- “From a crypto perspective, it’s clear that there is going to be a big focus on making the Bitcoin mining business greener.”
- On top of several US states like Texas and Wyoming already signaling their intentions to be crypto-friendly, US laws make things a bit more predictable and accessible for miners.
Everyone has their predictions for crypto in the coming year. These range from the guy who holds 0.1 ETH and makes memes proclaiming this year will be the year he finally acquires his coveted Lambo, to the professional hodlers who do deep dives into on-chain analytics to try and determine where the market is headed.
But some predictions carry more weight than others.
Prescience regarding the path of the crypto industry
The team at Soluna has their finger on the pulse of the crypto industry. Working at the crossroads of mining, sustainable development, and data centers provides a unique perspective that few others can offer.
Here are some of the team’s boldest and most important predictions for crypto in 2022.
1. Decentralization of financial transactions
John Belizaire, CEO at Soluna, who recently was among the experts testifying before the US House Committee on Energy and Commerce, sees the future of financial transactions as being decentralized. The incentives might be too great for it to be otherwise. “I think the prediction is that financial transactions and currency are going to become more decentralized. We expect microentrepreneurs to become more empowered to take control of their finances and bargaining power on a global basis,” he said.
And it’s not only newer, smaller entrepreneurs who he sees going this route.
“[For example], Coca-Cola — they’re using the blockchain to really secure their transactions and build an economic history. I expect that the change is going to drive a lot more focus on not just the makeup of the supply chain, but [also] the energy footprint of these companies,” Belizaire added,
The topic of sustainability in the crypto industry leads to the next prediction.
2. A shift to renewable bitcoin mining
Over the course of 2021, controversy swirled around the environmental impacts of proof-of-work networks like Bitcoin. While this has been a topic of heated debate, the current trends could soon make it a moot point, according to Belizaire.
“From a crypto perspective, it’s clear that there is going to be a big focus on making the Bitcoin mining business greener. I think that you’ll see that as a major headline and focus for next year. So, I think the main prediction is that in the US, we are going to see a pretty massive increase in Bitcoin mining operations and data centers connected to the grid and to green power sources,” he said.
He also added that the main forms of renewable energy that Soluna sees being used are wind and solar.
3. America will become bitcoin mining’s central hub
One trend that has been developing since China’s 2021 ban on bitcoin mining is the migration of miners to new jurisdictions. As they search for locations where they can set up operations and not be impeded by local authorities, the USA could become among the top destinations for these entrepreneurs.
“The US is becoming the center of Bitcoin mining,” Belizaire said. “That used to be China and other challenging jurisdictions. Kazakhstan is a perfect example of how different locations can be challenging for the business.”
This shift will likely serve as a net benefit for the industry. On top of several US states like Texas and Wyoming already signaling their intentions to be crypto-friendly, US laws make things a bit more predictable and accessible for miners.
“Seeing the business shift to the US is very encouraging for the maturity of the industry. The US has very strong laws. There’s this rule of law, there are structures that you can use. There’s mature capital, investment in the industry, and that capital is institutional in nature,” said Belizaire.
Imagine a world where American bitcoin miners make up the majority of proof-of-work hashrate, while making use of renewable energy. That’s where Soluna believes things could be headed.
The future is decentralized and green
Greater use of decentralized financial transactions, more mining with renewable energy, and America on top when it comes to mining. These are some of the most powerful predictions for 2022 from Soluna.
In the coming year, we will be on the lookout for clues as to whether these predictions hold true.
This content is sponsored by Soluna Computing. To read more about Soluna, explore articles like Industry Execs Make Case For Crypto Mining Before Congress.