What Happened to Bitcoin Mining in 2021?

Miners who mine BitcoinIn the outgoing 2021, they 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 awaits it 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.

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 a report by The Block Research, 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, although not entirely unexpected, situation, they had to transport 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's hashrate fell 50% from its peak of $166 million in April. But then this indicator began to recover in the market, and at 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 past year has shown, despiteban on mining by China, the mining business was able to quickly regain its position, receiving good income in 2021. Considering the trend towards the growing popularity of cryptocurrencies, we can expect that the income 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 to further increase 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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