Bitcoin Miner Revenue Sees Massive 6-Month Crash – What’s Going On?
December 02 2023 - 10:40AM
NEWSBTC
Despite Bitcoin being up over 100% year-to-date (YTD), a recent
report shows that this hasn’t necessarily translated to profits for
the network’s miners. Instead, these miners seem to be experiencing
a downturn in their revenue even as the Bitcoin Halving
looms. Related Reading: Bitcoin A Tad Closer To $40,000 – Is
$41K The Next Stop In A Few Days? Bitcoin Miners’ Revenue Down By
Over 30% According to a report by BanklessTimes, the revenue of
these miners is down by over 30% in the past six months.
Interestingly, these miners had their most profitable month when
Bitcoin’s price was just picking up at the beginning of the year.
Their revenue soared to as high as $918.8 million in January. In
the months after that, there was a significant decrease in the
revenue earned. Things began to pick up again in October, as that
month represented their second-highest monthly earnings of
2023. They are reported to have earned $885 million in that
period. However, the downward trend resurfaced in November as these
miners saw a drop in their revenue once again. The total earned in
that month stood at $615.1 million. Commenting on this data,
BanklessTimes crypto expert Alice Leetham noted how this has become
a cause for concern. This brought about the need to analyze factors
that may be contributing to this downward trend. BTC market
cap currently at $758 billion on the daily chart: TradingView.com
Related Reading: Ethereum ATH: Exploring The Possibility Of Ether’s
New Peaks In 2024 Factors Contributing To The Trend The volatile
nature of Bitcoin prices has been singled out as the most obvious
factor affecting miners’ revenue. Bitcoin’s failure to meet certain
price projections has directly impacted the profitability of mining
projections. There is the likelihood that certain miners
doubled down on their operations in hopes that the crypto token
will hit certain milestones, and that hasn’t happened.
Bitcoin mining difficulty adjustment is said to be another factor
for this downward trend. Mining difficulty becomes higher as more
miners enter the network. This ultimately leads to a decrease in
miners’ revenue as more persons are competing to mine a block.
Bitcoin’s popularity hasn’t helped in this regard, as the network
continues to attract an increasing number of miners.
Meanwhile, there is also the Bitcoin Halving event, which will be
playing in the minds of these miners. This is when miners’ rewards
are cut in half. The next one is scheduled for April 2024. With
this downward trend and the halving on the way, it isn’t surprising
that these miners are looking to diversify their operations.
BanklessTimes, however, believes that things could start looking up
once again for these miners. They highlighted the ongoing
advancements and increasing acceptance of Bitcoin as factors that
might help “counterbalance these difficulties.” Featured image from
Shutterstock
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