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Bitcoin Miner Profits Squeezed as Hash Price Hits October 2023 Lows

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Bitcoin Miner Profits Squeezed as Hash Price Hits October 2023 Lows

Miners are facing a new challenge after the halving event, as the high network hash rate and lower revenues are impacting profitability. The hash price, which is the average revenue a miner earns per hash, has reached its lowest level since October 2023. CryptoQuant, a crypto analytics firm, reported that the hash price dropped from around $0.12 in April to $0.07 after the halving, following a peak of $0.19 on halving day.

The bitcoin halving event reduced miners’ block rewards from 6.25 BTC to 3.125 BTC, while operational costs remained unchanged. CryptoQuant’s CEO estimates that mining costs with Antminer S19 XPs will double from $40,000 to $80,000 after the halving. Despite the decrease in rewards, the total network hash rate has remained stable, indicating that mining is still profitable at current bitcoin prices, which have been holding above $64,000 since April 19, according to Markets Pro.

Transaction fees reached record levels relative to total miner revenue on the day of the halving, accounting for 75% of total revenue, or around $80 million. Since then, transaction fees have decreased to approximately 35% of total miner revenue. While the immediate effects have been relatively stable, there could still be long-term impacts on the hash rate and overall miner activity. Past post-halving periods have seen miners exit the market due to high operational costs. Factors such as bitcoin price movements and changes in electricity costs are expected to play significant roles in the mining business.

13 thoughts on “Bitcoin Miner Profits Squeezed as Hash Price Hits October 2023 Lows

  1. Why does it always feel like miners are the ones getting the short end of the stick? This halving event has made their lives even more difficult. It’s just not fair!

  2. With bitcoin prices holding steady above $64,000, it’s reassuring to know that mining can be profitable for miners.

  3. This is so unfair! Miners work so hard to secure the network, yet they’re constantly struggling to maintain profitability. Something needs to change!

  4. It’s impressive to see how miners adapt to new challenges and continue to contribute to the crypto ecosystem.

  5. I can’t believe transaction fees accounted for 75% of total revenue on the day of the halving, only to decrease later. Miners are being hit hard from all sides!

  6. It’s frustrating to see how past post-halving periods have seen miners exiting the market. Will history repeat itself? This uncertainty is just adding to the stress miners have to endure.

  7. The correlation between bitcoin price movements and changes in electricity costs highlights the importance of external factors in mining profitability. 📈⚡

  8. This halving event is really taking a toll on miners’ profitability! It’s so frustrating to see the hash price dropping to its lowest level since October 2023.

  9. It’s fascinating to witness the interplay between the halving event and its effects on miners’ profitability. 🔁💰

  10. As a reader, this article has given me valuable insights into a world I didn’t know much about. Thanks for the information! 📚🌟

  11. The dynamic nature of the mining industry never ceases to amaze me. It’s a constant cycle of change and adaptation. 🔄🌐

  12. The fact that mining costs with Antminer S19 XPs will double after the halving is eye-opening. The challenges are real for miners!

  13. Double the mining costs? Are you kidding me? The halving has just made things worse for miners. It’s like a never-ending cycle of decreased rewards and increased expenses.

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