2022 has been a difficult and tough year for investors, traders , crypto asset businesses and Bitcoin miners in general. A prolonged bear market , exacerbated by a series of 'catastrophic' events, poses a threat to miners.
Miners dealt with a variety of issues, including defaulted loans, quarterly losses, and a soaring Bitcoin hashrate that hit an all-time high. All of these factors affect the profitability of miners and cause selling pressure.
The situation was exacerbated when the price of crypto assets, including Bitcoin (BTC), plummeted. Bitcoin , which has decreased by around US$ 48,000 from 2021, has hit a low of US$ 15,590 at the end of 2022. According to data compiled from The Block, Bitcoin miner revenue will reach US$ 9.55 billion or around IDR 148 trillion in 2022.
Lower Income
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Quoted by Watcher.Guru , Bitcoin , which was trading around US$ 16,693 at the time of writing, has experienced a decline along with other cryptos. The fall in crypto prices has had a huge impact on the income and profits of miners.
While revenues of around US$9.55 billion in 2022 seem like a lot, they are comparatively lower than 2021 revenues.
During 2021, Bitcoin miners generated over $15 billion in revenue, according to data from The Block. This is actually considered a year-over-year increase of 206%.
Unfavorable Market Conditions
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The high earnings of Bitcoin miners in 2021 are due to the skyrocketing price of BTC. The crypto asset with the largest market cap was able to touch an all-time high of US$ 68,789 on November 10, 2021.
While currently, BTC is down 75.69% from its all-time high. The troubled market conditions of 2022 saw some miners selling and some other companies closing.
However, since 2022 finished and 2023 opened, many are hoping for a bullish phase and a trend reversal. If such circumstances occur, hope that 2023 can be a better year than the previous year.