2023-08-28 15:40:31
Amid a Bitcoin (BTC) hashrate surge to never-before-seen heights, revenue from the bitcoin mining have plummeted to record lows. This unexpected trend has puzzled many in the cryptocurrency community.
According to data provided by Blockchain.com, the hashrate of the Bitcoin network peaked at 414 exahashes per second (EH/s), an increase of approximately 80% over the figures recorded last year and 54% higher than the figures from the beginning of this year.
Although there seems to be an improvement in the security of the network, the income of the miners has plummeted. Revenue is only $0.060 per terahash per second per day. For mining to be profitable at such hash rates, an upward adjustment of prices is necessary.
Bitcoin miners’ income plummets
The hashrate, which refers to the computational power used to mine new bitcoins and validate transactions on the blockchain, has been steadily climbing to new all-time highs. Interestingly, this is generally seen as a positive sign, indicating the robustness and security of the network. However, the correlation between hashrate and mining revenue has taken a surprising turn.
Even though miners are contributing more computational resources than ever before, their revenue has seen a drastic decline. Some industry experts propose several factors that might explain this phenomenon and the impact it will have on the profitability of Bitcoin miners.
Notably, some community members mentioned general market sentiment as a contributing factor. The Bitcoin price, while still volatile, has not experienced the meteoric surges seen in previous years.. With a relatively stagnant price, the value of the rewards earned by miners in terms of fiat currency has also been limited.
Additionally, network congestion and high transaction fees have led some users to seek alternative cryptocurrencies or easier payment methods. This, in turn, has affected the transaction fees charged by miners.
The players in the mining sector look to the future
Recall that Riot Platforms has expanded its operations with the acquisition of more than 33,000 Bitcoin mining equipment from MicroBT, a leading manufacturer in the world of cryptocurrency mining. According to the announcement, the strategic purchase positions the company for success in the 2024 Bitcoin halving event, which will reduce block rewards from 6.25 to 3,125 BTC per block.
Meanwhile, in March, The data revealed that Bitcoin mining difficulty saw an increase of over 13.50%, requiring approximately 35.6 trillion hashes to mine one Bitcoin.
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