The market has wielded a considerable influence on the earnings of miners. The highest point of daily revenue created in the last year managed to surpass USD 70 million.
Daily Bitcoin mining earnings linked to mined block rewards have been stuck below $30 million for the last four weeks.
According to information delivered by the Braiins website, miners have received decaying profits in recent weeks. Even though the rewards in BTC for each mined block stood at 6.25 bitcoins since the last halving.
Over the last year, the most significant level approached by Bitcoin mining when it comes to profit generation in USD per day was fluctuating around 72.66 million at the end of October 2021. On the other hand, in 2022, the maximum that BTC mining as a profit in just one day fluctuated around USD 51 million.
The Most Prominent Reason Behind this Decay is the Market Crash
Unlike digital assets market fluctuations, values like the mining capacity of the Bitcoin network and its mining difficulty did not play a vital part in the deterioration currently faced by BTC miners. However, both the hash rate and the difficulty of Bitcoin can intensify the impact of the market on the incomes generated by the miners.
There are theories reflecting that a massive influx of miners or a drastic increase in mining capacity by existing workers in the Bitcoin platform could temporarily help counterbalance the modest profits generated by this activity. However, as soon as the network automatically applies adjustments and sets up the difficulty, block production will get back to normal flow, as will average daily USD earnings.
As long as the price of Bitcoin keeps frozen in the market, it will hardly increase the profits in USD generated daily through the rewards of BTC mining.
One BTC is Equal to one BTC
Fortunately, for miners, the rewards for mining a block on the Bitcoin network continue to generate the equivalent amount of BTC, regardless of the substantial cost of this asset in the market.
A popular saying in the bitcoin community claims “one bitcoin is equal to one bitcoin”, and it refers to the fact that the true worth of Bitcoin does not rely on the price it has as a product of speculation in the exchange market, but in what it represents as technology and as a good alternative currency.
Given the non-stop attacks of the current bear market against the current cost of Bitcoin, miners currently would need to re-define their plans to remain their activities afloat and remain alive during this period.
The profitability of Bitcoin mining, despite being at a relatively limited point, approached a friendly level of stability. A few days ago, and coinciding with data brought by the Hashrate Index, the hash price in Bitcoin got back to USD 0.14 per Tera hash.
However, taking into account that the profitability of mining reached a balanced spot would not be entirely correct. According to Paulino Rossi, CEO of the Argentine company focused on crypto mining SouthMining.Capital, the hash price indicator remains below the stages that could get considered normal for the market.
By: Jenson Nuñez
