simultaneous reduction of hash rate and income of Bitcoin miners; An alarm for the mining industry?

The total daily income of Bitcoin miners from block rewards and transaction fees has now reached $11.67 million; A figure that was last seen on November 2, 2020 (12 Aban 99), that is, when Bitcoin was priced at only $13,500.

To Report Cointelegraph, the fall in the daily income of Bitcoin miners is clearly influenced by its poor price performance in the past months and the increased processing power required to compete with other miners, following the difficult growth of the Bitcoin network. However, the decrease in network hashrate over the past months has provided an opportunity for some miners to recoup some of their previous losses.

As mentioned, miners’ income used to be at this level when Bitcoin was traded around $13,500. Now, with the price around $16,500, we are seeing this revenue level, which means that it is harder to make money from Bitcoin mining than it was two years ago due to the noticeable increase in network difficulty and rising energy costs around the world.

Bitcoin mining difficulty is now at the highest level in its history, i.e. 37 trillion, and this means that miners must spend more energy and processing power to remain competitive in the network.

On the other hand, as mentioned earlier, Bitcoin’s hash rate has been continuously decreasing over the past months. The hash rate of the network is currently close to 200 exahes per second, which has dropped by about 35% from the peak of 316.7 exahes on October 31 (November 9).

Hash rate is also generally considered as a security indicator that shows how resistant the Bitcoin blockchain is to attacks such as double-spending. The current landscape has caused some miners to resort to temporary solutions such as using cheaper mining devices and migrating to areas where energy costs are lower than elsewhere.