Many crypto investors are still skeptical about the profitability of Bitcoin mining. This is not surprising given the rising energy prices in recent times. In addition, Bitcoin miners’ revenues have been in a downward trend since November 2020.
Current earnings of Bitcoin Miners
Meanwhile, BTC miners have been experiencing a downturn in their earnings lately. This situation is due to lowered prices and the current bearish state of the crypto market. It is not too surprising for miners as the value of the token against the dollar is going down.
As of November 2021, Bitcoin miners posted the highest earnings ever. But information from Blockchain.com showed that these BTC miners’ revenues had fallen significantly since the peak surge.
Bitcoin miners’ earnings are now down to their lowest since November 2020. At the time of writing, the figure stands at just over $11.67 million.
While this downward trend is mainly due to the plummeting price of the BTC token, other metrics are also contributing to the occurrence. A notable example is rising energy prices. Another example is the decrease in Bitcoin’s profitable days. A decline of about 83.40% in the profitable days has already been recorded.
BTC holders have made profits for approximately 3,738 days since 2015. On the other hand, Bitcoin holders would have gained little or nothing for about 747 days in the same period. At the time of writing, BTC is trading at $16,146, showing a 24-hour change of -1.72%.
Working system of Bitcoin mining
The working process of BTC mining is simpler than it sounds. However, it requires the proper understanding of prospective and existing miners. Primarily, Bitcoin miners guess a 64-digit number called a hash. In most cases it is called hash mining.
Miners depend on powerful computers to quickly guess this 64-digit number (hash). There are about 16 possibilities for each digit in the number. They consist of the numbers 1 through 10 and the letters A through F.
Generating a guess involves rolling a die with 16 sides 64 times. This action alone only generates one bet. Miners still have many more possible answers, and this is where they need their mining systems.
These computers roll the 16-sided die at a very high speed with a lot of computing power. The reward for mining goes to the miner who arrives at the correct hash first – adding a block to the Bitcoin blockchain. The continuity of this process and the price of BTC contribute to the income of these BTC miners.
Featured image from Pixabay, chart from TradingView.com