The poor market performance of the largest cryptocurrency by market capitalization Bitcoin (BTC) has greatly impacted the mining revenue earned by stakeholders in the space.
In the last two years, a consistent decline in the revenue gauge has been observed in addition to increasing network difficulty and a heavier computational demand. Amidst all these, there has been a jump in the cost of energy.
For some time now, the BTC hash rate has been experiencing a downward trend, giving miners the chance to recover a large percentage of their losses.
According to Bloomberg, in September the hash price index, which is a measure of the mining revenue value per unit of computing power, dropped to around 7.7 cents for each terahash. At that time, that was the lowest it had fallen since September 2020.
Markedly, this index is influenced by some factors which it uses to calculate the miners’ total revenue which includes the price of BTC and transaction fees. Since September, there has been a continual decrease in the hash rate of the Bitcoin network. At present, the hash rate is 225.9 exahash per second (EH/s), almost a 30% decline in its value by October 31st.
Bitcoin Miners Experience Several Mining Difficulties
In the United States, the total BTC mining revenue including block rewards and transaction fees has declined to $11.67 million. This figure was last witnessed in November 2022 when the value of 1 BTC was still $13,500.
Currently, the BTC is trading at around $16,500 which would have implied an increase in miners’ revenue.
However, the network difficulty which has contributed to mining hardship coupled with the increased cost of energy has led to lower income in terms of dollars. Precisely, the difficulty of mining a BTC block has grown to about 37 trillion, thereby intensifying the amount of energy and computational power which miners require to remain competitive.
Some of these miners have resorted to selling off count held in investment to offset many costs. Amidst all of these, miners in some territories are staying afloat and increasing their BTC production. Bitcoin mining giant Marathon Digital became the second largest BTC holder with 11,285 BTC units.
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