The Bitcoin (BTC) mining hash rate continues to climb while the miner revenues soared during the past couple of weeks. Glassnode, a blockchain research firm, states that bitcoin miners saw their income grow by 57%. The researchers also note a likely reason for the massive increase in revenues.
Bitcoin hash rate continues to climb
First, let’s have a quick look at the hash rate of the Bitcoin network. We have mentioned before how the Chinese mining ban caused a massive correction from 180 million tera hashes per second (TH/s) to 84 million TH/s. The decline in computing power reached its deepest point at the beginning of July. The recovery that followed is impressive.
In about one and a half months, the hash rate climbed back up to 119 million TH/s, an increase of 41%. The recovery was initiated by the automatic mechanism called the difficulty adjustment. Read more about this mechanism in this article. Now, let’s have a look at the details Glassnode brought forward in its weekly on-chain update.
Bitcoin miner revenues increase as miners come back online
After the halving in May 2020, bitcoin miners saw their revenues decrease quite a bit. Of course, this was a result of the halving event slashing miner subsidies in half. In May, miners reached the lowest miner income of about 5,6 BTC per exahash (EH). But as the difficulty, as mentioned earlier, decreased due to China’s bitcoin mining ban, the miner income started to rise again.
During the exodus, miners who remained online saw their income rise by 57% to 8,8 BTC/EH, levels last seen in mid-2020.
During the week Glassnode’s update covers, the mining hash rate recovered by about 25%. Glassnode suggests that this increase in computing power indicates that approximately 12,5% of the miners that went offline in China are now back online. This, of course, leads to more computing power available and thus an increasing difficulty. On the 13th of August, the difficulty rose by 7,3% after the 6% increase two weeks prior.
Nevertheless, the developments in China and the rest of the world make bitcoin mining one of the most profitable businesses. As a result, more and more mining service providers offer green mining solutions which let you mine bitcoin in an environmentally friendly way.
Read more about GRN Energy here.
