Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Bitcoin Miners Struggle with Declining Revenue Post-Halving Event

Bitcoin Miners Struggle with Declining Revenue Post-Halving Event

CoinotagCoinotag2024/09/20 16:00
By:Crypto Vira
  • Bitcoin miners continue to struggle significantly following the fourth halving event, which took place five months ago.
  • The revenue for mining has hit unprecedented lows, creating substantial challenges for miners.
  • Recent data indicates that the daily hashprice has dramatically fallen to $43.81 per PH/s as of September 21.

Bitcoin miners face a daunting financial landscape five months post-halving, with record-low revenues causing significant economic strains.

The Decline in Mining Revenue Post-Halving

Five months after the fourth halving event, Bitcoin miners find themselves navigating an arduous financial environment. The halving has reduced the block subsidy by 3.125 BTC, leading to a significant drop in overall mining revenue. From March to block height 840,000, hashprices stayed between $85 and $115 per PH/s, but the current figure has nosedived to $43.81 per PH/s as of September 21. This drastic decline is attributed to lower block subsidies and minimal onchain fees.

Impact on Hashprice and Miner Revenue

Examining the figures closely, it’s evident that miners’ earnings have taken a hit. Over the past 24 hours, miners have managed to earn an average of 3.18 BTC, including fees and the block subsidy. High-priority transaction fees remain minimal, costing only 3 satoshis per virtual byte, equating to approximately $0.27. This confluence of a reduced block subsidy and diminutive transaction fees is exerting immense pressure on mining operations.

Comparative Monthly Earnings

According to data from theblock.co, Bitcoin miners generated $534.91 million in revenue thus far in September, a clear reduction from August’s $851.36 million. With nine days left in September, miners need to generate over $316.45 million to avoid September becoming the worst month of 2024 for mining revenue. This steep decline underscores the ongoing struggles faced by miners in the post-halving landscape.

Concerns and Future Outlook

Bitcoin miners are at a crucial juncture, facing mounting operational costs juxtaposed with dwindling revenues. The ongoing financial strain poses severe threats to smaller mining firms, potentially accelerating industry consolidation. The focus now shifts to technological advancements and efficiency improvements as potential mitigators in this harsh economic climate. The persistence of low transaction fees further complicates the miners’ revenue streams, necessitating strategic adjustments to sustain operations.

Conclusion

The fourth halving event has significantly restructured the financial landscape for Bitcoin miners, resulting in historically low revenues and heightened economic challenges. As the sector grapples with diminished earnings, the emphasis on operational efficiency, technological upgrades, and cost management will be crucial for navigating this precarious period. The industry’s resilience will undoubtedly be tested in the coming months, with the potential for further transformations driven by these economic pressures.

In Case You Missed It: MicroStrategy Boosts Bitcoin Holdings with $458.2M BTC Purchase, Now Holds 252,220 BTC
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!