Following the historic earning gains from Bitcoin (BTC) halving, miners encounter a new challenge: a heightened network hash rate leading to reduced revenues and profitability.
The price a miner gets for completing one hash operation, referred to as the hash rate, has hit its lowest point since October 2023, based on data from crypto analysis firm CryptoQuant. Initially in early April, this price stood at around $0.12. However, it dipped down to $0.07 following the halving event, which saw a peak hash rate price of $0.19 on that day.
The Bitcoin halving reduced the reward miners receive for each block from 6.25 Bitcoins to 3.125 Bitcoins, but mining expenses have stayed the same. According to CryptoQuant’s CEO, Ki Young Ju, the cost of mining with Antminer S19 XPs is projected to jump from $40,000 to $80,000 post-halving.
Although the rewards have decreased, the overall Bitcoin network hash rate has stayed constant following the halving, implying that Bitcoin mining remains profitable at its present pricing, as indicated by CryptoMoon Markets Pro with Bitcoin maintaining a price above $64,000 since April 19.
Despite the fact that it’s too soon to observe any long-term impact on the cryptocurrency network’s hashrate following the halving, miners have continued to mine at the same pace as before, according to CryptoQuant’s latest report. The network’s total hash rate remained steady at 617 EH/s after the halving event occurred.
On the day of the cryptocurrency halving, the transaction fees hit an all-time high in comparison to the miners’ overall earnings. Approximately 75% of the miners’ income came from transaction fees on that particular day, amounting to approximately $80 million. However, since then, the percentage has decreased to around 35% of the total miner revenue.
Initially, the hash rate and miner activity appear stable, but their long-term consequences remain uncertain. Historically, following a halving event, some miners have left the market because of escalating operational expenses. Bitcoin price fluctuations and shifting electricity costs are key factors that can significantly impact mining operations.
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2024-04-24 20:41