In 2021, Bitcoin mining hashrate growth slowed down significantly. Although this has been a theme since the advent of ASICs, the China ban on Bitcoin mining has hindered it’s growth. Some Bitcoin miners are still being acquired and shipped overseas, while others are turned off forever and reduced to parts.
Below is the Bitcoin hashrate. It dropped significantly but rebounded almost as fast as it dropped. With hasrate slowing now compared to August, it looks like it will continue its trend if not grow faster as all the miners that were shut off are sent to the US and other countries.
Yearly hash rate growth has been slowing as well. Each year the growth has been lower and lower since the advent of ASICs. The Chart below is in log scale so you might be able to get a sense of how extreme the slowdown is. Year over year growth rate of hash has been slowing down significantly. This is partly due to the addition of each miner. Each miner has a flat number of terahash that contributes to the network. But this terahash continues to be a marginal percent as the total hash rate grows.
This is not a bad thing considering this means that the drop in revenue per miners is slowing down. The mining industry seems to be maturing, but the industry itself is getting more competitive.
For at home miners, as long as your rig is profitable, it is staying profitable for a longer period of time. Everyday there are new ways of capturing heat and increasing efficiency by the community. This is extremely bullish for everyone in the space whether hosting miners at the facilities Compass provides or buying them for yourself. The golden age of mining is upon us.
