The revenue earned by Bitcoin (BTC) miners has fallen to an all-time low where it hasn’t been for 2 years. This is due to the tough market conditions and higher computing demand, while network problems continue to increase.
Mining revenues down
However, a sustained decline in the BTC hash rate over the past month has meant that miners may have at least partially recouped their losses.
Total revenue from the Bitcoin mining industry fell to approximately $11.67 million. This is an amount last seen on November 2, 2020. Bitcoin’s trading price at the time was around $13,500. While the current market price of around $16,500 suggests a significant increase in mining revenues, several factors such as rising energy prices are driving down revenues.
In addition, the difficulty of mining a Bitcoin block has skyrocketed to new records over the year, forcing Bitcoin miners to expend more energy and computing power simply to stay competitive.
Hash rate on Bitcoin network dropped again
However, it is noteworthy that this hash rate of the BTC network has dropped again over the last 3 months. This hash rate is currently approximately 225.9 Exahashes per Second (EH/s). This is a decrease of approximately 28.5% from the all-time high of 316.7 EH/s set on October 31, 2022.
The hash rate is a security metric that, in this case, helps protect the Bitcoin network from double-spend attacks. The higher the number of EH/s, the better the security of the network. Given the grand scheme of things, temporary measures being taken by the crypto community include buying cheaper hardware for crypto mining and resettling in jurisdictions with lower energy prices. It is currently unknown how long these revenues will remain at this level.