Since when have Bitcoin mining revenues been falling? The poor market performance of the largest cryptocurrency from the main market Bitcoin (BTC) has affected the earnings of miners in the space.
Over the past two years, there has been a steady decline in revenue estimates in addition to the increasing complexity of the network and the need to compute more. In all this, there is an increase in the cost of energy.
For some time now, the BTC hash rate has been declining, giving miners the opportunity to recover a large percentage of their losses. According to Bloomberg, in September the price of the hash index, which is an example of the value of mining per unit of computing power, fell to around 7.7 cents for each terahash. At the time, it was the lowest since September 2020.
Obviously, this list affects some of the factors it uses to calculate the total cost of miners, which includes the price of BTC and transaction fees. Since September, there has been a decrease in the Bitcoin network hash rate. Currently, the hash rate is 225.9 exahash per second (EH/s), down almost 30% from its value as of October 31.
Bitcoin mining face many mining difficulties
In the United States, the total amount of BTC investment, including block fees and transaction fees, dropped to $11.67 million. This figure was last seen in November 2022 when the value of 1 BTC was still $13,500.
Currently, BTC is trading at around $16,500, which would have indicated an increase in miners’ income. However, the difficulty of the network that contributed to the difficulty of mining, along with the increase in energy costs, made the money lower in the dollar. Specifically, the difficulty of mining the BTC block has increased to around $37 trillion, increasing the computing power that miners need to remain competitive. Some of these miners have started selling investment accounts to pay for many things.
Amidst all this, miners in some areas stay afloat and increase their BTC production. Bitcoin mining giant Marathon Digital has become the second largest BTC holder with 11,285 BTC units.