The revenue generated by Bitcoin (BTC) miners fell to their lowest level in two years due to poor market performance and higher compute demand amid growing network difficulties. However, a continued decline in the Bitcoin hash rate over the past month has allowed miners to recoup their losses.
Bitcoin’s total mining revenue – block rewards and transaction fees – in US dollars fell to $11.67 million, a figure last seen on November 2, 2020, when Bitcoin’s trading price was around $13,500.
While the current market price of around $16,500 suggests a clear increase in mining revenue, factors such as greater mining difficulties and rising energy prices are contributing to lower dollar revenue.
In addition to the above, the difficulty of mining a Bitcoin block has skyrocketed to an all-time high of nearly 37 trillion, forcing Bitcoin miners to expend more energy and computing power to stay competitive. .
However, over the past three months, the Bitcoin network’s hash rate has seen a steady decline. The hash rate stands at 225.9 exahash per second (EH/s), which has fallen by 28.6% from its all-time high of 316.7 EH/s on October 31, 2022.
Hash rate is a security measure that helps protect the Bitcoin network against double-spend attacks. However, given the grand scheme of things, temporary measures taken by the community include acquiring cheaper mining equipment and relocating to jurisdictions with low energy prices.
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New York Mayor Eric Adams believes the goal of making New York a crypto hub can be combined with statewide efforts to reduce the environmental costs of mining. cryptography.
“I’m going to work with lawmakers who are in favor and those who have concerns, and I think we’re going to come to a great meeting place,” Adams said while revealing that the city will work with lawmakers to strike a balance. . between the development of the crypto industry and legislative needs.