Elaine Jean Tech 01.11.2022 14:Jan PM EST

Bitcoin 2022 Price Prediction: Slowly Crashing This 2022 Under $40,000; Jack Dorsey Building Own Mining in Block

Bitcoin 2022 Price Prediction: Slowly Crashing This 2022 Under $40,000; Jack Dorsey Building its Own Mining in Block — Bitcoin price is crashing massively from $51,800 in 2021 to $42,675 at the start of 2022. Furthermore, the CEO of Block, Jack Dorsey, is creating a Bitcoin mining microchip that will make crypto mining more accessible. Photo : Jack Guez/ Getty Images

Bitcoin price reached an all-time high of $51,800 just three days after Christmas last year.

However, the world's largest cryptocurrency, Bitcoin, is now priced at $42,675, as per CoinMarketCap. This price crash has been its lowest for more than three months now.

Since September 2021, Bitcoin's price now is trading at its lowest value.

Bitcoin 2022 Price Prediction

Forbes reported that the senior technical analyst at StockCharts.com, Julius de Kempenaer, stated that the newest Bitcoin crash is a perfect example that gave additional proof of Bitcoin's bearish trend.

For the Bitcoin 2022 price prediction, Kempenaer stated that after completing a double top formation on the break below 60k, the drop below 45,500 support solidified the downturn in BTC.

He then further added that the breaking below 45.5k triggered a further decline and a test of the next support level around 40k, in the crypto's price.

In addition, the head of research at Valkyrie Investments, Josh Olszewicz, also commented on the Bitcoin markets' recent downward trend.

He explained that risk-off-related rate rise scenarios and fears are now propelling the bearish market action, and turning these moving averages from neutral to bearish as the price trend measurements, like low time moving averages, went from extremely bullish to neutral movements.

Jack Dorsey's Block

Meanwhile, as stated in Cryptopotato, Jack Dorsey, the co-founder of Twitter and the CEO of Block, has always publicly expressed his support of Bitcoin for a long time.

With that, he also expressed why his company's Bitcoin ASIC (application-specific integrated circuit) project is needed and what it could mean for the BTC network's future.

The CEO stressed the need for Bitcoin mining to be more decentralized and energy-efficient in a post from October 2021.

Block's research aims to address the long-standing energy issues that have plagued cryptocurrency mining.

It is known that Block is now aiming to build more efficient computer chips and power structures that will be more beneficial for all miners who can rely solely on renewable energy sources.

Bitcoin Mining in Block

The speculation that Dorsey is creating a new Bitcoin mining microchip in Block is due to the LinkedIn job posting that was made.

Block is formerly known as Square, and is a San Francisco-based financial services group.

The company is looking to employ a creative digital design lead to join the team that will assist construct the "next generation" of microchips used to mine Bitcoin, according to a recent LinkedIn job offering.

Jack Dorsey discussed the main features of his vision that would be included in the open-source Bitcoin mining system based on custom silicon.

He touched on points saying that cryptocurrency mining needs to be more distributed, more efficient, and more accessible.

Dorsey also added that silicon design is too concentrated in a few companies, which makes supply overly constrained and pointed out that there isn't enough focus on vertical integration

1/Mining needs to be more distributed. The core job of a miner is to securely settle transactions without the need for trusted 3rd parties. This is critical well after the last bitcoin is mined. The more decentralized this is, the more resilient the Bitcoin network becomes. True?
— jack (@jack) October 15, 2021

3/Silicon design is too concentrated into a few companies. This means supply is likely overly constrained. Silicon development is very expensive, requires long term investment, and is best coupled tightly with software and system design. Why aren’t more companies doing this work?
— jack (@jack) October 15, 2021

5/Mining isn’t accessible to everyone. Bitcoin mining should be as easy as plugging a rig into a power source. There isn’t enough incentive today for individuals to overcome the complexity of running a miner for themselves. What are the biggest barriers for people running miners?
— jack (@jack) October 15, 2021

As reported in Benzinga, a significant increase in ASIC pricing is a result of the increasing demand for Bitcoin mining and stressed supply chains, and a global shortage of chips.

According to Zack Voell of Compass Mining, ASIC pricing will follow Bitcoin's price in whatever direction it goes.

As an example, ASIC prices increased by more than 25% at the start of the third quarter of 2021.

Eventually, Dorsey wants to make Bitcoin mining more accessible to everyone through Block's Bitcoin mining infrastructure. As he believes that Bitcoin mining should be as simple as connecting a gear into a power source.