Why is profit from mining bitcoins at an all-time low? A carding news forum.
Even though the fourth "halving" of the Bitcoin network occurred more than two months ago, its effects have continued to affect Bitcoin miners, making the industry's profit margins even smaller than they have ever been.
On May 1, the "hash price" of Bitcoin fell to just $44.76 per petahash /second (PH/s), per day, as measured by Hashrate Index. The metric measures a miner's daily earnings at a specific hash rate.
The rate at which Bitcoin miners can generate guesses to solve the mathematical problems required to mine a Bitcoin block and receive freshly printed BTC is known as the "hash rate" of the cryptocurrency. There are one quadrillion hashes in a petahash.
That game necessitates specialized, power-hungry computer equipment that can be powered by inexpensive electricity. Individual miners' margins decrease as global competition intensifies over time, forcing all but the most effective businesses into net losses.
The daily hash price of Bitcoin was $92.20 on April 19, the day before the halving. A sharp drop to $57.53 on April 25 followed, except a brief spike in fee revenue that was caused by Runes.
Since then, the hash price has mostly gone up and down with the price of Bitcoin. At a daily hash price of $48.29, miner profitability is reapproaching its early May lows with BTC back on the decline this month.
Evidently, the behavior of Bitcoin miners is being affected by the low profitability. Since its post-halving peak, the total Bitcoin hash rate has decreased by 13% to just 564 exahashes (one quintillion hashes) per second (EH/s), indicating that many miners are shutting down their unprofitable machines.
According to CryptoQuant's research, miners have also been shifting more BTC to exchanges this month, indicating that they may require additional funds to cover operating expenses. As of June 10, Marathon Digital had sold 1,400 BTC in June, compared to only 390 BTC throughout May; nevertheless, miner stocks appear to be unaffected overall. The Valkyrie Bitcoin Miners ETF (WGMI), which provides exposure to the Bitcoin mining industry, has increased by 25% in the past month, reaching a 2024 high in June, although performance varies from company to company. In contrast, Bitcoin is down 11%, and MicroStrategy (MSTR), a major Bitcoin investor, is down 13%.
Even though the fourth "halving" of the Bitcoin network occurred more than two months ago, its effects have continued to affect Bitcoin miners, making the industry's profit margins even smaller than they have ever been.
On May 1, the "hash price" of Bitcoin fell to just $44.76 per petahash /second (PH/s), per day, as measured by Hashrate Index. The metric measures a miner's daily earnings at a specific hash rate.
The rate at which Bitcoin miners can generate guesses to solve the mathematical problems required to mine a Bitcoin block and receive freshly printed BTC is known as the "hash rate" of the cryptocurrency. There are one quadrillion hashes in a petahash.
That game necessitates specialized, power-hungry computer equipment that can be powered by inexpensive electricity. Individual miners' margins decrease as global competition intensifies over time, forcing all but the most effective businesses into net losses.
The daily hash price of Bitcoin was $92.20 on April 19, the day before the halving. A sharp drop to $57.53 on April 25 followed, except a brief spike in fee revenue that was caused by Runes.
Since then, the hash price has mostly gone up and down with the price of Bitcoin. At a daily hash price of $48.29, miner profitability is reapproaching its early May lows with BTC back on the decline this month.
Evidently, the behavior of Bitcoin miners is being affected by the low profitability. Since its post-halving peak, the total Bitcoin hash rate has decreased by 13% to just 564 exahashes (one quintillion hashes) per second (EH/s), indicating that many miners are shutting down their unprofitable machines.
According to CryptoQuant's research, miners have also been shifting more BTC to exchanges this month, indicating that they may require additional funds to cover operating expenses. As of June 10, Marathon Digital had sold 1,400 BTC in June, compared to only 390 BTC throughout May; nevertheless, miner stocks appear to be unaffected overall. The Valkyrie Bitcoin Miners ETF (WGMI), which provides exposure to the Bitcoin mining industry, has increased by 25% in the past month, reaching a 2024 high in June, although performance varies from company to company. In contrast, Bitcoin is down 11%, and MicroStrategy (MSTR), a major Bitcoin investor, is down 13%.