Because of the constant increase in hashrate, Bitcoin [BTC] miners may be on the verge of giving up. This is according to CryptoQuant, an on-chain crypto analysis platform.
However, the BTC hashrate was not the only factor that posed a risk.
Not to mention, the hashrate serves as the mining process’s computing power.
At the time of publication, the BTC hashrate had reached an All-Time High (ATH) of 261,576,490,591.99 per second. This information was provided by CryptoQuant.
In the same vein, the mining difficulty of the coin was extremely high from the point it was on 9 October when it decreased.
Source: CryptoQuant
All risk, less rewards
Reportedly, the rise in mining difficulty could lead to more decline in miners’ revenue and profits. With the current state, miners might find it challenging to exit the declining revenue circumstances.
As lower profitability is in full force, CryptoQuant noted that Bitcoin miners could experience worse than the 80% Year-on-Year (YoY) decrease. CryptoQuant further stated,
“In this situation, the amount that miners made from each hash plummeted to its lowest level ever, dropping by more than 80% over the previous year. In the current market environment, miners are paid quite low, which might lead to another miner-related capitulation.”
Source: Glassnode
A look at the BTC miners’ revenue showed that there had been a massive decline since the last day of September.
This situation suggests that miners are increasingly finding it difficult to remain profitable. According to Glassnode, miners’ revenue which was about 1,058.09 on 10 October, had decreased to 908.54 at press time.
Bitcoin miners also saw more downside as block rewards fell to 893.75, especially as the number of blocks mined seemed to be on a free fall.
Glassnode data showed that BTC blocks mined as of 10 October were 171. However, the difficulty in mining led to the daily block mine count of 143 as of 13 October.
Source: Glassnode
Is there a way out?
Considering the decrease, Bitcoin miners would expect a quick fix to be around the corner. However, situations like this might not fade out soon.
At the time of this writing, BTC was trading at $19,764. While the king coin may have reclaimed the $380 billion market cap, miners may require far more than a minimal revival in their quest for better rewards.
Still, a high asset price might not be the only guaranteed way out, as cheaper electricity, efficient hardware, and an improved mining pool could also play a part.
On the other hand, crypto exchange, Binance wants to help miners out. In its 14 October release, Binance noted that it was supporting the Bitcoin mining industry with a $500 million lending project. As such, this development could help reduce the pressure on the BTC mining community.
