Bitcoin Hashrate and Miner Earnings Decline: Navigating Challenges in May
The recent statistics on Bitcoin’s hashrate show that it has been below the 600 exahash per second (EH/s) mark for about a week. However, the recent increase in the price of Bitcoin has had a positive impact on the overall hashprice, with the value of 1 petahash per second (PH/s) daily surpassing $50.
Bitcoin’s hashrate represents the computational power used to secure BTC blocks on the network. Miners are rewarded with 3.125 BTC and the fees associated with the block they uncover. According to the seven-day simple moving average (SMA) from Luxor’s hashrateindex.com, the hashrate was steady at 647 EH/s on April 27, 2024. However, it dropped to approximately 592 EH/s on May 15, reaching a low of 582 EH/s on May 8.
By analyzing 417 blocks from block heights 843,210 to 843,627, between May 13 and May 15, it was found that miners received an average of 3.293 BTC per block. This average includes not only the 3.125 BTC block subsidy but also around 0.168 BTC in fees per block mined. May has proven to be a month of lower earnings for miners, with total revenues of $411.28 million in the first 15 days. Out of this total, $34.65 million, or 8.42%, came from transaction fees.
In comparison, miners earned slightly over $2 billion in March and $1.79 billion in April. However, it is unlikely that May’s earnings will come close to those levels. Currently, the daily value of 1 petahash of output, known as the hashprice, is $52.36. This is a significant improvement from the low of $46.51 per PH/s on May 9 and higher than the $48.98 per PH/s observed on May 14 at 9 p.m. EDT. Despite the halving of BTC block rewards and minimal fees, the increasing value of BTC is a positive development for miners.
The next factors to consider for BTC miners are the future outlook and the sustainability of reduced revenue. The rise in BTC’s price and the recent favorable difficulty adjustment at block height 842,688 on May 9 are advantageous for miners. The next difficulty adjustment is expected on or around May 23, with another decrease likely. Higher BTC values and further difficulty decreases would greatly benefit miners.
The recent trends in Bitcoin’s hashrate and miner revenues illustrate the delicate balance between computational power and financial returns in the cryptocurrency ecosystem. The sustainability of miners’ operations depends on technological advancements and market dynamics. The upcoming difficulty adjustments and movements in Bitcoin’s price will play a crucial role in shaping the future landscape for miners.
What are your thoughts on the hashrate remaining below 600 exahash and the drop in revenue? Share your opinions in the comments section below.
