Bitcoin Miners’ Revenue Continues To Fall
Bitcoin mining revenue fell below $1 billion in August due to a drop in investor interest, resulting in a drop in price as well as difficulty in mining the cryptocurrency.
Over the past four months, starting in May when digital asset prices hit new lows due to the collapse of the Terra ecosystem, mining revenue has been on a downward trend.
Despite a 10% increase in revenue from $597.35 million in July to around $657 million in August, revenue from the largest cryptocurrency by market capitalization is still far below the $1 billion threshold that that miners have in 2021.
Due to the way mining revenue is calculated, most of the drop is attributed to the drop in the price of the leading cryptocurrency
Mining revenue is calculated by multiplying the total amount of BTC earned as a reward by the price of the digital asset for a certain period of time. In August 2022, BTC traded within a price range of $19,600.79 and $25,135.59 after opening and closing the month at $23,336.72 and $20,049.76, respectively.
YChart data shows Bitcoin miners’ peak daily revenue of $24.65 million on Aug 19.
Like most of the months prior to August, BTC has seen a year-over-year decline in revenue. Miner revenue in August 2021 is about $1.4 billion, and total rewards earned from last month are down 53% from this value.
Bitcoin became extremely difficult to mine last month. BTC.com data shows that BTC mining difficulty has skyrocketed 9% over the past three weeks, from 28.17 trillion on August 4 to 30.98 trillion on August 31.
Although the mining difficulty shows a strong and growing network, it also leads to lower profits due to more computing power required, but the value of the coin is still under $25,000.
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