Bitcoin mining revenue has hit lowest in two years due to poor market performance and heavier computational demand amid rising network difficulty. However, the steady decline in Bitcoin hashrate over the past month has helped miners to recoup their losses.
Total Bitcoin mining revenue has dropped to $11.67 million as of November 28, 2022 – the number was last seen on November 2, 2020 when Bitcoin was only trading at around $13,500. Bitcoin price at the moment is hovering around 16,200 USD, slightly higher than at that time, so it can be said that Bitcoin mining revenue is very low. Factors including greater mining difficulty and rising energy prices contributed to a severe drop in earnings.
Bitcoin mining difficulty has skyrocketed to an all-time high of nearly 37 trillion, forcing Bitcoin miners to expend more energy and computing power to compete with each other. However, the hashrate of the Bitcoin network has seen a steady decline over the past three months. The hashrate is at 225.9 exahash per second (EH/s), down 28.6% from its all-time high of 316.7 EH/s on October 31, 2022. Hashrate has importance as an indicator of the overall security of a blockchain network, as well as the mining difficulty for miners to earn block rewards. The more miners who are part of a blockchain network competing to mine blocks, the less likely it is for a malicious attack on the network to occur.
In fact, since China banned all crypto trading and mining in September 2021, the US has become the largest contributor to the global Bitcoin hashrate. However, Chinese miners seem to have returned. The US currently accounts for 37.84% of the global hashrate, followed by China with 21.11% and Kazakhstan 13.22%.
Overall, network difficulties and rising energy costs around the world coupled with the drop in price of BTC are putting a lot of pressure on Bitcoin miners. Most miners have gone into hibernation while others have sold their assets massively to cover losses.
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