Bitcoin Miner Earnings Fall to Lowest Level Not Seen Since 2020 in November


Basic facts:
  • Since January of this year, miners’ income has decreased by 70 percent.

  • The current mining income is at the same level as in the first days of November.

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The crisis and the bear market continue to take a heavy toll on Bitcoin miners, whose profits are hemorrhaging as the situation worsened after the collapse of the FTX exchange. Now, mining revenue, measured in US dollars, has fallen to the lowest level not seen in more than two years.

As it shows graphics Brains Mining Insights, which details the development of the network and bitcoin miningdaily earnings (USD) from miners dropped to just over 11.60 million in 2022 on the night of Saturday, November 26.

Although this sounds like a large number, it is decreased by 72 percent. USD compared to January of this year, when Bitcoin miners earned an average of USD 39.9 million.

Just over 11 million USD mining revenue allows the indicator to reach the same level that it marked in the first half of 2020. days of November. It was the first year of the COVID-19 pandemic when BTC was trading at 13k. .

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BTC is trying to break above $16,500

All this happens when bitcoin (BTC) It’s hard to top $16,500, he said Price calculator from CryptoNoticias. This is a floor that BTC has yet to break due to The collapse of the FTX cryptocurrency exchange. This is a further blow to the market, which was already in a slump at the beginning of the year due to the Terra and Luna situation.

While the price of the leading cryptocurrency could see a slight increase in the income of miners, other elements limiting that reality. Among them are the difficulty of Bitcoin mining and the energy costs of operators.

The chart shows the decline in miners' earnings in dollars.  They show a 72% drop, with revenue from $39.9 million.  USD in January  up to 11.60 million  USD in 2022  November 26
Bitcoin miners’ earnings fell to a two-year low of just over $11 million. Font: Brains Mining Insights.

As reported by CryptoNoticias a few days ago, the mining difficulty, which is one indicator of the level of participation of miners in the network, reached all-time highsof 36.95 trillion (T).

This means that the operators they have invest much more electricity and computing power to operate. This, at least until another adjustment, is expected next December 6.

As for electricity, it is known that after the war in Russia and Ukraine, service prices rose tremendously in different countries. This includes the United States, where most of Bitcoin’s computing power is concentrated, as shown by the University of Cambridge mining map.

According to statesman, the price per kilowatt hour in the United States has been steadily rising since last year. Only at the industrial level, electricity price decreased from $0.072 to $0.074, a small increase that could threaten the stability of miners as the market remains sensitive.

Hashrate is also down

A confluence of negative factors has affected hashrate, which is the computing power used to process transactions on the Bitcoin network, as well as miners’ earnings.

According to Brains, since last November 16 this indicator haha transferred and 13 percentafter 265 eruptions per second (EH/s) two weeks ago to 235 EH/s at the end of this article.

This is important because along with difficulty, hashrate is also often used as a meter of the level of participation of miners in the Bitcoin network.

The graph shows the decrease in bitcoin hashrate.  This represents a 13% drop from 265 eruptions per second (EH/s) two weeks ago to 235 EH/s in 2022.  November 27
The computing power used to process transactions on the Bitcoin network has also steadily declined. Font: Brains Mining Insights.

And it is precisely that, as mentioned earlier, the crisis of the fall of FTX and its consequences in the market, extrapolated to Bitcoin minerswhich (along with network nodes) support the decentralized protocol.

In this way, if there is no recovery of some kind in the short term, the price of bitcoin may fall into negative spiral by the actions of the miners.

It happens that if the operators desperately start selling their shares because of the crisis, sure the price of the cryptocurrency may fall even deeper.

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Source: news.google.com

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Pessimism continues in the cryptocurrency space, with Bitcoin falling below $17,000
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