• Home
  • Bitcoin News
  • Blockchain News
  • CBDC News
  • NFT News
  • New to Crypto?
  • About
  • Contact
Facebook Twitter Instagram
Todayq News
  • News
  • Bitcoin
  • Metaverse
  • NFT
  • Blockchain
  • New to Crypto
  • Contact
Twitter Facebook Instagram LinkedIn
Todayq News
News

Declining hash prices join low BTC prices to damper miners’ profits

By Samvidha Sharma19 November 2022, 02:04 PM
Declining hash prices join low BTC prices to damper miners' profits

The Bitcoin (BTC) miners and their profits are struggling with various issues all at once like a prolonged bear phase, increasing energy prices, high network hashrates, etc. The network hashrate was soaring at all-time high values followed by a slight decline in the value, however, the struggle doesn’t seem to ease. 

As per recent data from Glassnode, the BTC miner hash price has dwindled to new all-time low values at $58.3k exahash per day. The miner hash price is a metric whose value is calculated by estimating the ratio between the daily miner revenue and the mining hashrate. 

The daily miner revenue is calculated by multiplying the total amount of BTC that miners have earned in block rewards and transaction fees per day with the current prices of the crypto whereas the mining hash rate is referred to as the total computing power currently connected to the BTC network and is measured in exahash per second (EH/s). 

Looking at the graph, it is clear that the BTC mining hash price ever since the creation of the crypto has been on a declining trend. The primary reason behind this consistent decline is the “mining difficulty”, a feature of the blockchain algorithm that ensures the chain validators mine at a constant, network-intended rate. 

Every time the network’s hash rate surges, miners can produce blocks faster because of their computing power but that is something that the network’s algorithm doesn’t want. Hence, it increases the level of difficulty bringing the speed level to the desired levels. 

Analysts suggest that the hash price depicts the income that miners can generate per unit of the utilized computing power every day. The declining hash prices signify that the miners can mine the same amount of block rewards irrespective of the high network hash rate. 

Other factors affecting the miners’ revenue also include the halving that occurs every 4 years dividing the block rewards into half alongside the BTC prices that have a significant share in it. When the market is in a bull phase, the hash price breaks down the prevalent trend and shows a temporary surge. 

The current scenario has been very harsh on the miners as the hash rates have increased while the hash prices have decreased. All of this has forced the miners to dump about 15% of their reserves in the past week as reported by Todayq.

At the time of writing, Bitcoin is trading at $16,576.80, a 0.62% drop from the previous day and about a 13.34% drop over the past month. 

Bitcoin Mining
Share. Facebook Twitter LinkedIn Telegram WhatsApp Reddit

Comments are closed.

Must Read

Top BTC ATM maker suffers “highest” security breach; loses over $1.5 million

Nayib Bukule’s approval rating stands at 91%, thanks to Bitcoin

Microsoft plans to develop Crypto and NFT-friendly Web3 wallet for its Edge Browser

US Banks face account openings surge following recent failures; caution arises for Crypto sector

Instagram
In a recent revelation, Cody Harris, a Texas House of Representatives member, proposed a Bitcoin mining bill. The proposed bill recognizes the right to mine Bitcoin in the state, however, it has also added fuel to the inherently controversial topic of cryptocurrency mining in Texas.
Hackers stole almost $195 million in a flash loan assault from the decentralized finance (DeFi) platform Euler Finance, making it the biggest attack of 2023 thus far. The thieves moved the stolen money to two new wallets, one of which contained DAI tokens and Ethereum (ETH) stablecoins.
While the global regulatory approach to crypto seems to be blurred, a recent study highlights that the interest of the masses in crypto in particular regions hasn’t slowed at all. The study took into consideration crypto-related internet searches to produce results.
Crypto automated teller machines (ATMs) are considered to be one of the key infrastructure pillars to assess the rate of mass adoption of cryptocurrencies. Reportedly, the number of crypto ATMs around the globe has seen a significant reduction this year.
Crypto by TradingView
Twitter Facebook Instagram LinkedIn
  • About
  • Careers
  • Advertise
  • Privacy
All rights reserved by Todayq Technologies PVT. LTD.

Type above and press Enter to search. Press Esc to cancel.

 

Loading Comments...
 

You must be logged in to post a comment.