Luxor’s Hashrate Index 2022 Mining Year In Review: Bitcoin’s Resilience Is Quite Incredible!
2020-2022 was an extraordinary year for Bitcoin mining that’s for sure! A lot has happened and the only thing that hasn’t changed is Bitcoin’s resilience and ability to overcome the unexpected. According to Luxor’s Hashrate Index (LHI), the mining difficulty increase of 2022 was highly volatile, yet despite all the uncertainty, Bitcoin miner’s still managed to increase their working capital and produce impressive returns.
Highlights of the 2022 Mining Year:
- Bitcoin’s Hashrate Increased Dramatically. Bitcoin’s hash rate as recorded by Luxor’s index (LHI) showed that the total hash rate of the network rose from 101,521,890 TH/s at the start of the year to 202,843,435 TH/s at the end of the year – a phenomenal 100.8% increase. Even with the wild market fluctuations and the difficulty adjustment, Bitcoin miners had made a great decision by staying in the game!
- Electricity Demand and Cost of Mining Increased. According to LHI, the average mining cost of one BTC increased by a staggering 54.6%, almost twice that of the 2022’s bullish market return. This was mainly due to the increase in electricity demand. Nevertheless, it was encouraging to watch the network grow even with such extraordinary electricity costs.
- Bitcoin’s Resilience. Despite the fact that market volatility was at an all-time high, Bitcoin miners accruing huge electricity bills and investing capital in new mining machines, miners managed to hold their own and kept mining for Bitcoin. The result was an astonishing 202.8TH/s hash rate and it showed just how resilient the mining community really is.
Conclusion:
2022 was an amazing year for Bitcoin mining. Despite volatile markets and huge electricity costs, miners stayed in the game and produced strong returns. The Luxor’s Hashrate Index (LHI) clearly showed just how resilient the Bitcoin mining community is, aptly demonstrating that when the going gets tough, miners will never give up.
