Miners who mine Bitcoin were able to earn more than $15 billion in 2021. 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?
According to calculations The Block Research, the best month for miners in 2021 was March, this month they were able to receive $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
So Thus, the year turned out to be quite good for this area, despite the dramatic ban on all operations with cryptocurrencies in China - including mining, after which miners began to move to other, more states that are friendly towards them.
How did the ban in China affect miners?
As stated in report The Block Research, after decisive actions by the Chinese authorities to combat mining and with 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 were forced to transport their equipment to other countries or simply sell it off.
However, the Chinese factor had only a short-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 now USA; in October, the share of this country reached 35% against 17% in May. Behind the USA in this list of countries popular among miners are also Kazakhstan, Russia, Canada and some European countries.
What awaits mining in 2022?
As the experience of the past year has shown, despite the ban on mining by China, the mining business was able to quickly restoreits 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 for now... 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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