Data shows that Bitcoin miner revenue has fallen around 81% since the peak in October, here’s why.
Bitcoin Miner Revenue Lost Significantly During Bear Market
According to the latest weekly report from Arcane Research, the BTC miner hash price has now fallen to $0.077 per TH/s.
The relevant indicator here is the “hashrate”, which is a measure of the total amount of computing power connected to the Bitcoin network.
The value of the metric is calculated in TH/s (terahash per second), signifying the speed at which miners can make new hashes on the blockchain.
The daily revenue that these chain validators make per TH/s of their hashrate is called the “hashprice”. Here is a graph that shows the trend of this indicator over the past two years:
Looks like the value of the metric has been going down over the last year | Source: Arcane Research's The Weekly Update - Week 39, 2022
As you can see in the chart above, the Bitcoin mining hash price has seen a steep decline over the past twelve months.
The value of the indicator has fallen from $0.422 during the October peak to just $0.077 today. This makes it an 81% drop over this period.
For comparison, the price of BTC has fallen 60-70% over the same period, a huge drop, but still better than miner earnings.
There are mainly two reasons why the Bitcoin mining hash price has suffered so badly in this bear market.
The first and most obvious is the fall in the price of crypto. Since miners pay all their running costs like electricity bills in fiat, the USD value of their earnings is more relevant to them, which is why the hash price is also in dollars.
Bitcoin’s value falling sharply during the bear market naturally meant that the hash price also took a hit.
The other reason is the constantly increasing hashrate. A feature of the BTC network is “mining difficulty”, which attempts to ensure that no matter how many miners or how much energy is put online on the chain, blocks will always only be hashed to one. steady pace.
This means that every time the hashrate increases, the network counteracts it by increasing the mining difficulty. Although there are more TH/s connected to the chain, the total revenue remains the same, which implies that the revenue per TH/s decreases.
BTC price
As of this writing, the price of Bitcoin is hovering around $19.8,000, up 4% in the past week.
The BTC value seems to have risen over the last two days | Source: BTCUSD on TradingView
Featured image from Brian Wangenheim on Unsplash.com, charts from TradingView.com, Arcane Research
Data shows that Bitcoin miner revenue has fallen around 81% since the peak in October, here’s why.
Bitcoin Miner Revenue Lost Significantly During Bear Market
According to the latest weekly report from Arcane Research, the BTC miner hash price has now fallen to $0.077 per TH/s.
The relevant indicator here is the “hashrate”, which is a measure of the total amount of computing power connected to the Bitcoin network.
The value of the metric is calculated in TH/s (terahash per second), signifying the speed at which miners can make new hashes on the blockchain.
The daily revenue that these chain validators make per TH/s of their hashrate is called the “hashprice”. Here is a graph that shows the trend of this indicator over the past two years:
Looks like the value of the metric has been going down over the last year | Source: Arcane Research's The Weekly Update - Week 39, 2022
As you can see in the chart above, the Bitcoin mining hash price has seen a steep decline over the past twelve months.
The value of the indicator has fallen from $0.422 during the October peak to just $0.077 today. This makes it an 81% drop over this period.
For comparison, the price of BTC has fallen 60-70% over the same period, a huge drop, but still better than miner earnings.
There are mainly two reasons why the Bitcoin mining hash price has suffered so badly in this bear market.
The first and most obvious is the fall in the price of crypto. Since miners pay all their running costs like electricity bills in fiat, the USD value of their earnings is more relevant to them, which is why the hash price is also in dollars.
Bitcoin’s value falling sharply during the bear market naturally meant that the hash price also took a hit.
The other reason is the constantly increasing hashrate. A feature of the BTC network is “mining difficulty”, which attempts to ensure that no matter how many miners or how much energy is put online on the chain, blocks will always only be hashed to one. steady pace.
This means that every time the hashrate increases, the network counteracts it by increasing the mining difficulty. Although there are more TH/s connected to the chain, the total revenue remains the same, which implies that the revenue per TH/s decreases.
BTC price
As of this writing, the price of Bitcoin is hovering around $19.8,000, up 4% in the past week.
The BTC value seems to have risen over the last two days | Source: BTCUSD on TradingView
Featured image from Brian Wangenheim on Unsplash.com, charts from TradingView.com, Arcane Research