Future

Bitcoin

Impact

<a href="https://ultramining.com/news/en/russias-bitcoin-gold-rush-mining-machine-influx-outpaces-rest-of-the-world/" rel="noopener noreferrer nofollow">Bitcoin miners</a> have been experiencing significant underpayment since mid-June, according to metrics from Сryptoquant. Currently, the estimated value of 1 petahash per second (PH/s) of <a href="https://ultramining.com/news/en/impending-bitcoin-halving-may-trigger-major-hashrate-decline-say-experts/" rel="noopener noreferrer nofollow">hashrate</a> remains notably low at $47.79 per PH/s. Despite the drop in profitability, Bitcoin's hashrate is still just below the 600 exahashes per second (EH/s) mark, according to <a href="https://news.bitcoin.com/ru/maynery-bitkoinov-byli-krayne-nedooplacheny-s-serediny-iyunya/" rel="noopener noreferrer nofollow">Bitcoin.com</a>.
Sharp Decline in Bitcoin Miner Revenues
Bitcoin miners have faced considerable financial challenges since June 16, 2024, with the hardest day being July 6. On this day, the <a href="https://ultramining.com/news/en/bitcoins-rebound-above-30k-boosts-hashprice-a-4-leap-in-24-hours/" rel="noopener noreferrer nofollow">Hashprice</a> index from Luxor indicated that the estimated value of 1 PH/s dropped to approximately $44 per PH/s between July 3 and July 7. This significant drop in revenue has impacted the overall hashrate, which fell to 560 EH/s on June 29.&nbsp;
Recent Hashrate Trends and Future Adjustments
Since then, the hashprice has seen a slight recovery, increasing by about 9% to approach $48 per PH/s. This modest rebound has led to an improvement in the overall hashrate, which has risen to 584 EH/s according to the seven-day simple moving average (SMA). However, the previous decline caused extended block intervals, leading to three consecutive difficulty reductions.
Despite these reductions, a difficulty adjustment expected on July 18, 2024, is likely to increase by 1-2%, based on current estimates, although this projection may change over the next few days. With nearly half of July already passed, Bitcoin miner revenues for the month remain relatively low. So far, miners have earned $332.98 million, suggesting that if this trend continues, July could be one of the worst months of the year in terms of earnings.
Impact on the Bitcoin Mining Industry
The sustained period of underpayment and fluctuating hashprices highlights the volatility and challenges within the Bitcoin mining industry. Miners must navigate these financial pressures while preparing for potential increases in mining difficulty, which could further affect profitability.&nbsp;

Bitcoin Miners Severely Underpaid Since Mid-June Amidst Increased Difficulty

Ultramining_Eng

Other articles published on Jul 15, 2024

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