The year 2021 has been the best year for the entire cryptocurrency industry. No matter the segment or the sector, every aspect of the crypto industry was thriving and was making a lot of progress.
Even the mining sector, especially Bitcoin mining had become extremely profitable for the mining centers. The 2021 bull run was something that the Bitcoin miners had always wanted.
It was the year when Bitcoin hit its all-time highs and set all new records that are yet to be broken. The industry thrived across the board and no one was worried at all.
Looking at the significant growth and success of Bitcoin mining, many miners preordered huge fleets of mining rigs, which are ASICS in the case of Bitcoin mining.
In addition to the above, the Bitcoin mining firms’ reserves were constantly rising and they were planning to mine even more tokens.
Some of the mining firms even went into the public market to make a name in the mainstream sector. They were confident that Bitcoin demand would continue surging and for this purpose, they kept on building empires of ASICs.
The Nightmare Came True
While all these developments were taking place, there was fear brewing that the crypto industry might end up crashing.
Not many people from the crypto industry paid much attention to this fear and speculation in the first place.
However, when China did enforce the ban and kicked the entire crypto industry out of its land, then people knew something bad had happened.
Although China enforced the ban in mid-May 2021, it wasn’t until the end of 2021 that the crypto industry faced the real impact.
After hitting an all-time high of $68k in November, the value of Bitcoin kept on plummeting. Its price found it extremely difficult to make it back up to $50k throughout the first half of 2022.
However, as the year 2022 came to a close, things had turned ugly for Bitcoin and its value was as low as $16k.
Bitcoin Mining Sector Took the Major Hit
Among all the sectors within the crypto industry, it was the mining sector that faced a major downfall. With the price of Bitcoin losing a major chunk of its all-time high value, BTC mining was no longer a profitable gig.
On top of that, the year 2022 was the worst in terms of economic downfall, which resulted in increasing fuel and energy prices.
The Bitcoin miners were struck with this factor as well and they continued facing the troublesome situation throughout the year 2022.
As a result, many Bitcoin mining firms shut down, while many had to sell their reserves to make ends meet. Many firms even sold most of their ASICs to other rich mining firms to make it through the difficult times.
Crypto Mining is Back in Business
The biggest shocker in the year 2022 for Bitcoin mining was Core Scientific going bankrupt. It was one of the largest Bitcoin mining firms that were unable to make it through to the year 2023.
While the year 2022 was a disaster, the year 2023 seems to be moving exactly the opposite to it. It means that so far, the year 2023 is going in favor of the cryptocurrency industry.
Most importantly, the year 2023 has gone in favor of the Bitcoin mining sector. So far, the highest trading price Bitcoin has managed to hit in the year 2023 is $22,153.
The report shows that Bitcoin hit the figure on January 20 and its weekly gains stood at 17%. With the trading price of Bitcoin getting pushed higher, the BTC miners have started to come at an advantage.
With the BTC price moving upward, many mining centers of reopened their mining rigs, which is set to increase the mining difficulty. However, if things go well, then the BTC price may continue surging.
The data shows that from January 1 to January 19, 2023, the hashprice surged by more than 20%. The profitability of the miners has increased.
Previously, the profitability of the miners was at $0.06 per TH/d and now it is up to $0.007874 TH/d.