Bitcoin miners’ earnings increase 50% in 4 days as the difficulty has decreased

The data shows that Bitcoin (BTC) miners’ revenues skyrocketed after the network experienced the sharpest drop in difficulty levels ever.

According to figures from Blockchain Resource Monitor, daily revenue has increased by more than 50%.

“Interesting momentum” access to Bitcoin mining

Bitcoin mining is currently in a unique state of change – around half of the hash power is offline as miners are leaving China and it is not yet known how quickly they will be back online.

At the same time, miners unaffected by the Chinese process saw half of their competitors disappear overnight, and profits have increased as a result.

With the data now available over the past few weeks, the extent of the changes is clear. Daily mining revenue was around $ 20.7 million on July 2, the day before the difficulty adjustment. A day later, it hit $ 29.3 million and as of Tuesday of that week, it hit $ 31.9 million.

All of this is the result of a “very interesting” analytics company that Glassnode put together in a video tutorial for this week’s edition of “The Week On-chain” newsletter.

“We have a very interesting dynamic where about 50% of the hashing power is currently offline and causes a huge overhead due to the logistics and simply not the hashing, as we currently have hardware idle and basically saw 50% of the remaining% have that half of them explain their competition. from the network.

“While the protocol is currently spending the same amount of coins as usual and having trouble solving the problem, we are currently in a situation where half of the network has doubled its revenue and the other half of the network is essentially producing nothing .

For active miners, profitability is back to what you see when BTC / USD trades at $ 55,000 to $ 60,000.

Block profile view time

The results weren’t just felt by miners. The average block time hit an all-time high in the past week, Glassnode added, was only beaten during Bitcoin’s “start-up” period in 2009-2010, before the cryptocurrency even price is stable in USD as well.

Other on-chain metrics also capture the dichotomy between different pools of miners.

Related: Is The Mining Difficulty Decrease Even Greater? 5 things to see in Bitcoin this week

These show, among other things, how some people spend their treasury on moving costs while they are unable to mine new coins and receive a block reward and fees.

At the same time, others are holding more BTC per block than they are spending – part of the uptrend that’s continuing even though the price drop has also hit more than 50%.

“This is definitely a must,” advises Glassnode.