Bitcoin Miner Revenue Declining
Bitcoin miners are experiencing a decline in revenue, according to Hashrate Index data. The income generated from Bitcoin mining operations is currently at near record lows, with a daily rate of $0.059 per Tera Hash (TH). This is only slightly above the level recorded in late November 2022, which was $0.056 per TH.
- At the lowest point of last year’s crypto winter, when prices fell below $16,000, the hash price dropped to its lowest point in three years.
- While BTC supporters are optimistic about price recovery in the second half of 2023, miners are facing the challenge of lower revenue.
- On May 8, the hash price reached its highest level in 2023 at $0.095, but has since contracted by over 40%.
- The declining hash price may indicate that miners are struggling to compete.
- The total Bitcoin hash rate has risen significantly throughout 2023, reaching a high of 465 EH/s in early July before dropping to around 329 EH/s.
More Rigs, Higher Hash Rate
The rising hash rate has led to the Bitcoin network adjusting its mining difficulty to the highest level. The network’s difficulty currently stands at 55.62 T after a 6% increment.
- Difficulty levels have been consistently rising throughout the year due to the increase in hash rate.
- In January, as prices recovered and the hash rate rose, the network increased difficulty levels by 10%, the highest spike of the year.
- Hash rate is expected to continue rising in the coming months, with Tether Energy planning to connect their rigs in Latin America, adding more competition for existing miners.
Hot Take
The declining revenue for Bitcoin miners is a concerning trend. As the hash price drops and competition increases, miners are facing challenges in maintaining profitability. The rising hash rate and difficulty levels further add to the pressure. It will be interesting to see how miners adapt to these changes and whether they can find new ways to optimize their operations and generate higher revenue.
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