Mining 2022: the main results of the year

The past year was extremely challenging for the entire crypto-industry in general and mining in particular. Let us note the most significant events for the cryptocurrency mining industry. 

First of all, questions about the impact on the environment were also raised. Although many opponents have concluded that the degree of harm from mining is somewhat exaggerated, there are still those who still believe it is necessary to keep the industry under control. Among the countries that take a tough stance remains the United States. Authorities believe that cryptocurrency mining can interfere with the transition to a “green strategy.

The fall in the value of bitcoin has dealt a serious blow to the industry. The cryptocurrency, which at the end of last year was predicted to exceed $100 thousand per coin, now can’t even stay at the level of $20 thousand.

The rising cost of electricity forces miners to look for the most profitable locations, which remain less and less. Even those countries that have always been willing to provide them with resources at a reasonable price are no longer haven. Some states, such as Iran, banned cryptocurrency mining during peak periods. 

Asic miners were rapidly losing value throughout the year. As a result, the year 2022 ends on the minimum figures. Some devices have fallen in price by 90%. 

By far one of the most significant events was Ethereum’s transition to the PoS algorithm. This not only deprived miners of the ability to mine ether but also caused them to turn their attention to other coins.

Unfortunately, the passing year was marked by a series of bankruptcies of large companies, as well as loud statements about losses and other financial problems. 

 It should also be noted that the difficulty of mining BTC set historical highs time after time, which further aggravated the situation of those who mine the cryptocurrency. This is partly explained by the fact that miners were forced to change their priorities from ETH to BTC after Ethereum switched to PoS. 

However, despite all the difficulties, the industry continues to live and work. One of the positives is that more and more representatives of the sphere are thinking about building their work on green energy. Moreover, mining has helped some countries get cheaper electricity. 

Like any negative phenomenon, crypto-winter will end someday. But blockchain technology and cryptocurrencies are already quite firmly entrenched in our lives, so there is every reason to believe that this crisis will pass as well.