The cryptocurrency market has exerted a great influence on the earnings of miners.
The highest point of daily revenue generated in the last year exceeded USD 70 million.
Daily Bitcoin mining earnings related to mined block rewards have been stuck below $30 million for the last four weeks.
According to data provided by the website brains, miners have seen declining revenue in recent weeks. Despite BTC rewards for each mined block have remained at 6.25 bitcoins since the last halving.
Over the last twelve months, the highest point reached by Bitcoin mining in terms of daily profit generation in USD was 72.66 million, at the end of October 2021. For its part, so far from In 2022, the maximum that BTC mining reflected as a profit in one day was USD 51 million.
The main reason behind the decline in income earned by Bitcoin miners is the market crash. If the graph that shows the evolution of the price of BTC in the market and that of the daily profits in USD generated by Bitcoin mining are taken as a reference, the relationship between both values becomes evident.
Unlike cryptocurrency market movements, values such as the mining power of the Bitcoin network and its mining difficulty did not play a crucial role in the decline experienced by BTC miners. Nevertheless, both the hashrate and the difficulty of Bitcoin can influence whether or not to intensify the effects of the market in miner earnings.
Hypothetically speaking, a massive influx of miners or a drastic increase in mining power by existing workers in the Bitcoin network could temporarily help offset the low income generated by this activity. However, as soon as the network automatically adjusts the difficulty, block production will return to normal, as will average daily USD earnings.
As long as the price of Bitcoin does not rise in the market, it will be difficult for the income generated in USD to increase daily through BTC mining rewards.
1 BTC is equal to 1 BTC
Fortunately for miners, the rewards for mining a block on the Bitcoin network continue to generate the same amount of BTC, regardless of the price of this currency in the market.
A popular saying in the bitcoiner community is “1 bitcoin is equal to 1 bitcoin”, which refers to the fact that the true value of Bitcoin does not lie in its price as a product of speculation in the foreign exchange market, but to what it represents as technology and as an ideal.
Given the inclement attacks of the current bear market against the price of Bitcoinminers have seen the need to refine their strategies to stay active. Recently, CriptoNoticias published an article mentioning some of the tactics that can be implemented by those who mine BTC to survive the red markets.
The profitability of Bitcoin mining, despite being at a relatively low point, reached a certain level of stability. CriptoNoticias reported a few days ago that, according to data from the Hashrate Index, the hashprice in Bitcoin returned to USD 0.14 per terahash.
Nevertheless, Considering that the profitability of mining reached a stable point would not be entirely correct. According to Paulino Rossi, CEO of the Argentine company dedicated to cryptocurrency mining SouthMining.Capital, the hashprice indicator “is still below the levels that can be considered normal.”