Bitcoin Miners’ Income Hits Lowest Point in Two Years, Here's Why

Bitcoin miners' revenue fell to its lowest position in the last two years due to poor market performance. (photo: dock. Pixabay)

JAKARTA - Revenue earned by Bitcoin miners has fallen to its lowest in two years due to poor market performance and heavier computing demands amid increasing network difficulties. However, the continued decline in Bitcoin's hash rate over the last month has allowed miners to recoup their losses.

Total Bitcoin mining revenue, block rewards and transaction fees, in United States dollars fell to USD 11.67 million (IDR 183 billion), figures last seen on November 2, 2020, when the trading price of Bitcoin was around USD 13.500 (IDR 211.5 million).

While the current market price is around 16,500 US dollars which indicates a marked increase in mining revenues. Factors including greater mining difficulties and rising energy prices, have contributed to lower earnings in dollar terms.

Additionally, the difficulty of mining Bitcoin blocks has skyrocketed to an all-time high of nearly 37 trillion, forcing Bitcoin miners to spend more energy and computing power to stay competitive.

However, over the past three months, the hash rate of the Bitcoin network has been in a steady decline. The hash rate reached 225.9 exahashes per second (EH/s), which was down 28.6% from the previous 316.7 EH/s on October 31, 2022.

The hash rate is a security metric that helps protect the Bitcoin network from double-spend attacks. However, given the grand scheme, temporary measures taken by the community include acquiring cheaper mining hardware and moving to a country that offers low energy prices.

New York City Mayor Eric Adams believes his goal of making New York a crypto hub can be combined with statewide efforts to curb the environmental costs associated with crypto mining.

"I will work with legislators who support and those who have concerns, and I believe we will come to a great meeting place," Adams said, quoted by Cointelegraph. He also revealed that the city will work with legislators to find a balance between the development of the crypto industry and the needs of the legislature.