Bitcoin Mining Profitability Is Near an All-Time Low—Why?
The post Bitcoin Mining Profitability Is Near an All-Time Low—Why? appeared on BitcoinEthereumNews.com.
We do the research, you get the alpha! Get exclusive reports and access to key insights on airdrops, NFTs, and more! Subscribe now to Alpha Reports and up your game! Go to Alpha Reports Although the Bitcoin network’s fourth ‘halving’ event occurred more than two months ago, its repercussions have continued to impact Bitcoin miners, making the industry’s profit margins tighter than ever. According to Hashrate Index, Bitcoin’s “hash price” tapped an all-time low on May 1, falling to just $44.76 per petahash/second (PH/s), per day. The metric quantifies how much money a miner can expect to earn daily at a specific hash rate. Bitcoin “hash rate” is the rate at which Bitcoin miners can produce guesses to solve the mathematical problems required to mine a Bitcoin block, and earn freshly printed BTC as a reward. One petahash equals one quadrillion hashes. Participating in that game requires specialized and power-hungry computer equipment with access to affordable electricity to keep them running. As global competition grows over time, margins for individual miners shrink, pushing all but the most efficient firms into net losses. The day before the halving, April 19, Bitcoin’s daily hash price was $92.20. What immediately followed—excluding a brief Runes-driven spike in fee revenue—was a steep drop to $57.53 as of April 25. Since then, the hash price has mostly risen and fallen alongside Bitcoin’s price. With BTC back on the decline this month, miner profitability is reapproaching its early May lows at a daily hash price of $48.29. The lack of profitability is clearly affecting Bitcoin miner behavior. The total Bitcoin hash rate has now declined 13% from its post-halving peak to just 564 exahashes (one quintillion hashes) per second (EH/s)—indicating that many miners are taking their unprofitable machines offline. This bearish price environment, coupled with the halving,…
Filed under: News - @ June 28, 2024 12:28 pm