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Capital Culture

Bitcoin Miners Experience Lowest Revenues In 11 Months As Difficulty Increases

Updated: Sep 30


Crypto Mining Farm at Apartment | Source: Life of A Miner | youtube.com/watch?v=VB7NV7SR3bA

As reported by Cointelegraph, in a notable development for the cryptocurrency market, Bitcoin miners have just experienced their lowest revenue-generating month since September 2023, witnessing a decline in the number of coins mined during the month of August.


According to Bitbo data, miner revenue dropped to $827.56 million in August, representing a significant decrease of over 10.5% from July's figure of $927.35 million. However, it marks a 5% increase from the revenue recorded in August 2023.


This decline is particularly stark when compared to Bitcoin's peak performance in March 2024, when miner revenue reached just under $1.93 billion. Notably, this peak coincided with Bitcoin's record high price of over $73,500 on March 13.


August's revenue figure is not only a substantial drop from the peak but also represents the lowest earning month for Bitcoin miners since September 2023, when their revenue stood at $727.79 million, a time when Bitcoin traded at around $25,000.


Nevertheless, despite the challenges faced by miners, Bitcoin's price has more than doubled since then, currently trading at $57,315 at the time of writing.

Furthermore, the number of mined Bitcoin saw a slight decrease from around 14,725 BTC in July to 13,843 BTC in August.


The declining revenue can be attributed to various factors, including reduced transaction volumes and the increased difficulty of mining BTC. The difficulty of mining Bitcoin has continued to rise, hitting an all-time peak of 89.47 trillion in August, up from 86.87 trillion in July. This increase in difficulty was further compounded by the halving of block rewards in April, which reduced rewards by 50% to 3.125 BTC.


Additionally, the median fees as a percentage of block rewards reached 2% over August, while the daily confirmed transaction 30-day average peaked at nearly 631,648 on July 31, before declining to 594,871 by Aug. 31, as per data from Bitbo and Blockchain.com.


Amidst these challenges and reduced profitability in mining Bitcoin, some miners have turned to providing computing power to artificial intelligence, with deals in this sector fetching miners billions of dollars.



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