Bitcoin mining revenue lowest in two years, hash rate on the decline

The revenue earned by Bitcoin (BTC) miners fell to two-year lows owing to poor market efficiency and a heavier computational demand amid rising community problem. However, an ongoing downturn in the Bitcoin hash rate over the previous month has allowed miners to recoup losses.

The complete Bitcoin mining revenue — block rewards and transaction charges — in U.S. {dollars} fell all the way down to $11.67 million, a quantity final seen on Nov. 2, 2020, when Bitcoin’s buying and selling worth was round $13,500.

While the present market worth of round $16,500 suggests an apparent improve in mining revenue, elements together with larger mining problem and rising vitality costs contribute to decrease earnings in greenback phrases.

Adding to the above, the problem of mining a Bitcoin block has skyrocketed to an all-time excessive of virtually 37 trillion — forcing Bitcoin miners to spend extra vitality and computational energy to remain aggressive.

However, over the previous three months, the hash rate of the Bitcoin community witnessed a gentle decline. The hash rate stands at 225.9 exahash per second (EH/s), which fell 28.6% from its all-time of 316,7 EH/s on Oct. 31, 2022.

The hash rate is a safety metric that helps defend the Bitcoin community from double-spending assaults. However, contemplating the grand scheme of issues, short-term measures taken by the group embody buying cheaper mining {hardware} and resettling in jurisdictions with low vitality costs.

Related: Bitcoin miners look to software to help balance the Texas grid

New York City mayor Eric Adams believes that objective to make New York a crypto hub may be mixed with statewide efforts to curb environmental prices associated to crypto mining.

“I’m going to work with the legislators who’re in help and those that have considerations, and I imagine we’re going to come to an ideal assembly place,” stated Adams whereas revealing that the metropolis will work with legislators to discover a stability between the crypto business improvement and legislative wants.