Bitcoin (BTC) miners pocket even less revenue

Bitcoin miners have seen a steady decline in revenue for almost five months and margins keep getting tighter. The increase in the number of minors would partly explain this situation.

Revenue from bitcoin (BTC) miners: a 16% drop in September

A blow for the minors of bitcoins who are once again suffering the pangs of declining income. Figures compiled by The Block Research indicate their profit margins are the lowest they’ve been in two years. In September, they brought in $550.5 million, down 16.2% from the previous month. A large portion of bitcoin miner revenue ($541.8 million) was distributed in the form of block mining rewards.

The rest, or $8.66 million, comes from shares deducted from transaction fees. The hash price index also fell to around 7.7 cents for every terahash. This is the lowest level on record in two years. It last approached this level during the crash of the crypto market in June. At the time, some miners had to sell coins held as investments to cover costs.

Why such a compression of margins?

According to figures from Coin Metric, revenue from bitcoin (BTC) miners is the lowest it’s been since 2020.

The number of bitcoin miners is increasing. This partly explains this drop in income according to experts. This is because the more miners connected to the network, the more complicated the process of solving puzzles to mine tokens becomes. To hope to mine tokens, miners must commit more computing power. With the rising price of electricity on the side, the cost of operation increases and the margins decrease.

The prolonged drop in the price of bitcoin combined with this persistent rise in the cost of energy has taken a toll on the revenue of bitcoin miners. Jarand Mellerud, mining analyst at digital asset research firm Arcane Crypto says: “ With all costs taken into account, only miners with extremely low electricity prices are currently profitable “.

Bitcoin mining sounds appealing, but the reality is quite different. It is necessary to take into account the cost of the initial investments and the charges (electricity, taxes, etc.) to hope to benefit from it. The extreme volatility in bitcoin price adds more uncertainty to the equation. The miners are also hoping for an increase in the value of the coin to get out of the tunnel.

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