Bitcoin may be in a bearish market, but the mining industry is growing bigger than ever. Bitcoin mining difficulty set a new record high for the sixth time this year on Tuesday, reaching 31.25 trillion, according to mining data from Braiins. The 4.89% adjustment was the third-largest increase this year.
Even though the leading cryptocurrency’s price has dropped sharply through April and May and continues sitting over 50% below its all-time high from late 2021, the mining industry’s growth is not slowing. Traditional investors, retail buyers, and even day traders may be bearish on bitcoin, but miners are not. This article unpacks some of the data that demonstrates the mining sector’s growth despite bitcoin’s current bearish market conditions.
retail-focused products and services that launched during the bull market. Twitter and other social media are saturated with photos and videos of at-home mining setups.
announced a new one-gigawatt facility planned for Navarro County, Texas in addition to the 400 MW facility already developed in Rockdale. Other market leaders like Bitfarms and Core Scientific also made recent announcements of considerable growth.
Even cities and local municipalities are entering the mining industry, albeit at very small scale. Bitcoin mining start-up MintGreen is working to make North Vancouver the world’s first city heated by bitcoin mining. And the city council in Forth Worth, Texas voted to pass support to launch a small government-run mining pilot project with some Antminer S9 machines.
been running a mining pilot project for months with plans to expand. Some of the biggest oil producers in the U.S. – ExxonMobil and ConocoPhillips – are also building partnerships with miners. And miners are saturating the Permian Basin with educational efforts to build partnerships with other energy producers.
Despite bitcoin’s bearish price action, the mining industry is still in its own bull market. And even though continued hash rate growth despite downward trending prices means dwindling revenue for some miners, the aggregate growth of the industry is a strong signal for the security of the network and the long-term resilience of the entire bitcoin economy.
This is a guest post by Zack Voell. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.