9.9 C
Amsterdam
29 March 2024
PumpMoonshot
Image default
News

Bitcoin mining: revenues doubled in recent weeks


Over the past three weeks, bitcoin mining revenues have grown significantly. 

In fact, profitability more than doubled , from $ 0.17 per day for THash / s on July 27 to over $ 0.4 in mid-August. 

Two factors affected these increases. 

The first is certainly the increase in the price of bitcoin, which has passed by 35% since July 27, since the BTC premium for those who manage to mine a block is always the same (6.25 BTC per block). 

But the difficulty of the hash extraction process certainly had an impact, as it dropped to the lowest point of the year starting on July 18, and has remained low ever since. 

To tell the truth, however, starting from 27 July the overall hashrate allocated to bitcoin mining returned to growth , after having literally collapsed from almost 200 Ehash / s in mid-May to 70 Ehash / s at the end of June. Excluding this minimum peak at the end of June, until July 27 it had always remained below 110 Ehash / s, but starting from the following day it returned above this threshold, even managing to return even above 130 Ehash / s in the last few days. 

In theory, an increase in hashrate should cause a reduction in profitability, due to increased competition, but this increase was far less than the increase in the price of bitcoin in percentage, thus acting only marginally. 

Bitcoin mining, profitability, revenue and accumulation

In a recent report published by Glassnode, for example, the law states that over the past two months the hashrate has increased by about 25% from the lows, suggesting that it is back online with computing power equivalent to about 12.5% ​​of miners. interested. 

They also add: 

“Bitcoin miners’ revenue per hash increased 57%, returning to mid-2020 levels as the Great Migration continues. The typical 900 BTC mined per day are distributed between 62.5% of the hashrate observed during the peak in May ”. 

Moreover, these increases allow miners to be able to reduce the amount of BTC they have to sell to finance their expensive activity, and this could also have an additional beneficial effect on the price of bitcoin itself. 

In fact, starting from July a new accumulation phase seems to have begun for the miners, who instead had to liquidate part of the bitcoins accumulated previously for the whole month of June in order to meet all the expenses. 

Glassnode adds: 

“Net growth in miners’ balances has now reached + 5k BTC / month, which demonstrates a net reduction in forced selling pressure from miners.”

News Source

Related posts

Bridge Oracle shows promise for TRON’s mission to herald the Web 3.0

PumpMoonshot

Fantom Price: How High Can FTM Price Reach in 2024?

PumpMoonshot

Join Us at the BitcoinHalving.com 21-Hour Livestream – Bitcoin Magazine

PumpMoonshot
Verified by MonsterInsights