The BTC miner revenues surpassed Ethereum for the first time this year in terms of net revenues but both exude similar patterns in declining profitability so let’s have a closer look at today’s latest Bitcoin news.
For the first time in a year, the BTC miner revenues surpassed those of ETH in June but both digital assets shwoed dwindling profit margins that happened due to the prevailing crypto winter. Bitcoin miners generated $656 million according to a July 5 report by Binance. In the meantime, the Ethereum miners brought in $548 million in the same timeframe which is over $100 million less than the BTC counterparties. The flipping was major because other than not happening in a year, the ETH miners were ahead of the BTC miners by $100 million a month earlier. The margin was even bigger in the months before May.
Based on the reports, there has been a close gap between the mining revenues in the past few months, and ETH which once led in terms of profitability was barely retaining the position as BTC miners’ revenues reached their levels. Then came June where amidst all of the uncertainty and the pressure on the market, BTC became more rewarding than ether. Even then, both of the digital assets were between a rock and a hard place in the recent time and the yield is proportional to the prices of the cryptos they mine. This means that their income was slashed dramatically in the face of the market downturn.
To put this into context, mining a single BTC block gives the miners 6.25 BTC during Bitcoin’s November high of $69K which was equivalent to $431,250. the figure is down by 60% now and BTC trades around $20K. miners are taking a two-year low since BTC traded at this price in December and the ETH miners suffered a similar fate when ETH Dropped below $1000, Binance noted:
“Due to the decline in price across the market, the returns from mining activities, although the same coin volume-wise, have declined significantly dollar-wise.”
Due to the decline in earnings, the miners were forced to sell their machines and the outputs or look for other ways for income sources. A few sought solace in traditional finance like debt and equity markets. On top of the issues, the miners in Washington have higher power bills but those in Kazakhstan are taxed.
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