The year 2021 was an exciting time for the evolving DeFi sector and NFTs. More conventional banks started offering cryptocurrency services. This signaled that cryptocurrency is here to stay. Experts have sounded an alert regarding several Bitcoin and blockchain technology developments in 2022.
Bitcoin’s hashrate has now reached a new all-time high, according to data from BitInfoCharts. The network is at its strongest ever, with a hashrate of 203.5 exahashes per second. The hashrate is a measurement of computing power used to generate new coins and secure the network.
Later this week, analysts expect the mining difficulty to rise to 24.98 trillion. This is just a tiny step away from the 25 trillion level that was recorded in May before the China ban went into effect.
The mining difficulty automatically adjusts every two weeks based on Bitcoin’s hashrate. The more prevalent the network becomes, the more bitcoins are created, which is why a positive change is required to avoid overproduction.
On June 20, the network’s hashrate plummeted to 58.4 exahashes per second, a local low. Although it could not regain its previous heights, it swiftly recovered as Chinese miners fled to other countries, including Kazakhstan and Russia. In October, the United States surpassed China as the world’s biggest Bitcoin mining center.
On July 3, the Bitcoin difficulty fell by a record 27.94 percent. This occurred after China’s moratorium on cryptocurrency mining sparked a migration of miners from the country.
Bitcoin Shift in 2022
Bitcoin growth can be attributed to its successful adoption in 2021 compared to 2020. By 2021, the quantity of Bitcoin held by private businesses has increased significantly, adding to spikes from 2020.
On-chain analyst Willy Woo stated in a Jan. 3 tweet that “public companies with significant BTC holdings have gained market share from spot ETFs as a means to access bitcoin exposure on public equity markets.”
This has become more apparent since MicroStrategy’s “Bitcoin for Businesses” event on Feb. 3 and 4, 2021. The online course aimed to address the legal issues for businesses interested in integrating Bitcoin into their operations.
Furthermore, investors who were previously hostile to cryptocurrencies are now turning to Bitcoin and its ecosystems to hedge against fiat currency inflation concerns. The impact of pandemic-induced stimulus packages has caused economic turmoil all around the world, with repercussions that could last for decades. As a result, the Consumer Price Index (CPI) has surged as expenses for common items continue to rise.
The billionaires are already aware of the risks posed by fiat currencies and central bank intervention, and they are gradually turning to crypto assets. If the trend persists, 2022 may see even more wealthy investors join their ranks.