Many cryptocurrency investors are still skeptical about the profitability of Bitcoin mining. This is not surprising considering the rising rate of energy prices of late. Furthermore, Bitcoin miner revenue has been on a downward trend since November 2020.
Current income of Bitcoin miners
Meanwhile, BTC miners are experiencing a decline in their income of late. This situation is due to the reduced prices and the current bearish state of the cryptocurrency market. Not too surprising for miners, as the token’s value against the dollar is going down the drain.
As of November 2021, Bitcoin miners recorded the highest income ever. Butfrom Blockchain.com showed that revenue from these BTC miners had dropped significantly from their peak.
Bitcoin miner revenue has now dropped to its lowest value since November 2020. At the time of writing, the figure stands at just over $11.67 million.
While this downward trend is mainly due to the BTC token price plummeting, other metrics also contribute to it. A notable example is the rise in energy prices. Another example is the decrease in profitable days of Bitcoin. A decline of around 83.40% has already been recorded on profitable days.
BTC holders have witnessed roughly 3,738 days of gains since 2015. By contrast, Bitcoin holders would have earned little to nothing for about 747 days in the same period. At the time of writing, BTC is trading at $16,146, showing a 24-hour change of -1.72%.
Bitcoin mining working system
The working process of BTC mining is simpler than it seems. However, it demands the correct understanding of potential and existing miners. Primarily, Bitcoin miners guess a 64-digit number called a hash. In most cases, it is called hash mining.
Miners rely on powerful computers to quickly guess this 64-digit number (hash). There are about 16 possibilities for each digit in the number. They are made up of the digits from 1 to 10 and the letters from A to F.
Generating a guess involves rolling a die that has 16 sides 64 times. This action alone only generates a guess. Miners still have many more possible answers, and this is where they need their mining systems.
These computers roll the 16-sided die at a very high speed with a lot of computing power. The mining reward goes to the miner who first reaches the correct hash: adding a block to the Bitcoin blockchain. The continuity of this process and the price of BTC add to the income of these BTC miners.
Featured image from Pixabay, chart from TradingView.com