Bitcoin Hash Rate Update: Miner Margins Shift Back Into Growth Despite Revenues At 19-Month Lows
Bitcoin Hash Rate Stagnates And Miner Revenues Fall
Revenues for Bitcoin miners seem to be falling to their lowest intake since August 2017. In a recent report released by Diar, miners that were able to improve their equipment and that secured low electricity prices have seen their margins reduced. Thus, they had to deploy a larger hash power to stay afloat.
That means that the revenue for Bitcoin miners dropped down to a 19-month low in February. Miners registered ~$195 million in revenues. This represents a decline of around 10% compared to the last month.
Diar addresses an important issue for miners and something that will have to change in the future. In December 2017, fees accounted for $295 million for miners, but due to the fact that Bitcoin price dropped and there is a larger adoption of Segregated Witness (SegWit), revenues from fees have become unnoticeable.
In May 2020, Bitcoin is going to be halving. That means that the rewards per block will drop from 12.5 to 6.25. Miners will clearly be less profitable if Bitcoin price doesn’t start growing once again. Fees will also start to play a more important role for miners to be able to remain profitable and the network protected.
As per the report released by Diar, smaller miners have left the market and the majority of the Bitcoin network will be running on the latest equipment. Those who do not upgrade their ASIC miners might be working at a loss. The hash rate has been increasing since December 2018, nevertheless, it currently has the same rate as after the drop experienced three months ago. Now, Bitcoin’s hash rate is close to 41 million TH/s.
The hash rate has also experienced a massive increase since the beginning of 2017. It grew more than 1700%, increasing the difficulty rate of the network.
Bitmain has already started to sell the s15 mining device and the next batch will be ready for shipment in April. The hash power is expected to keep growing in the coming months. With the S15 Bitcoin miner, Diar explains that miners will have 84% more return than with their predecessor, the S9.
Bitmain has been experiencing some issues during the last months and since Bitcoin and the market started to fall. AMD and Nvidia have also been affected by the bear market in the cryptocurrency space. All these firms have been benefited by the bull run experienced by Bitcoin in 2017 but harmed once prices started to fall.