August 8, 2022

What Happened to Bitcoin Mining in 2021?

What Happened to Bitcoin Mining in 2021?

Bitcoin miners inoutgoing 2021 were able to earn more than $ 15 billion. However, judging by the dynamics of the main cryptocurrency this year, this is far from the limit of their income. What happened to mining in 2021 and what will happen next?

The Block Research estimates the bestthe month for miners in 2021 was March, this month they were able to get $ 1.75 billion. During the year, miners around the world earned more than $ 15 billion, and this is almost 4 times more than in the previous year.

What Happened to Bitcoin Mining in 2021?

Source: theblockcrypto.com

Thus, the year turned out to be quite good forof this sphere, despite the dramatic ban on all operations with cryptocurrencies in China - including mining, after which miners began to move to other, more friendly states towards them.

How did the ban in China affect miners?

According to The Block Research report, afterdecisive actions by the Chinese authorities to combat mining and cryptocurrencies in general, miners lost access to 6 gigawatts of relatively cheap and previously available Chinese electricity. In this critical, albeit not entirely unexpected, situation, they had to move their equipment to other countries or simply sell it off.

However, the Chinese factor had onlyshort-term negative impact on the mining market. From May to July, Bitcoin hashrate fell 50% from its April high of $ 166 million. But then the market began to recover this indicator, and by the end of 2021 it increased by 19.6% compared to 2020.

At the same time, the leader in the mining market is nowUSA, in October the share of this country reached 35% against 17% in May. For the United States in this list of countries popular among miners are also Kazakhstan, Russia, Canada and some European countries.

What's next for mining in 2022?

As the experience of the outgoing year has shown, despitethe ban on mining by China, the mining business was able to quickly recover its positions, having received good income in 2021. Considering the trend of the growing popularity of cryptocurrencies, we can expect that the revenues received by miners in 2022 will continue to grow and reach $ 20 billion per year. At the same time, the United States will most likely remain the center of mining. With relatively inexpensive energy and relatively loyal legislation, the American market has every chance of increasing its share in the mining market - up to 45-50%.

Author: Dmitry Noskov - expert of the StormGain crypto exchange (platform for trading, exchanging and storing cryptocurrency)

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