Bitcoin again surpasses Ethereum in terms of profitability in mining: But there is a bigger concern
In recent months, the profitability of Bitcoin mining has declined compared to Ethereum. For almost a year, the top altcoin was consistently able to surpass Bitcoin. Now, however, the return from mining is leading again.
Bitcoin miners left in the lead
According to the latest data, compared to ETH miners, Bitcoin counterparts have experienced improvement. The recovery continued in June, an unfortunate month also for crypto enthusiasts, since the profitability of ETH Mining has also met with anger from the harsh, cold weather in the crypto industry.
$ 656.47 million is the total amount generated by Bitcoin miners in the last month, while for the same period the figures for Ethereum registered a total of $ 549.58 million, which shows that the Bitcoin miners have surpassed their Ethereum counterparts by over $ 100 million in June .
Considering that Ethereum revenues were actually ahead of Bitcoin by about $ 100 million while large margins were recorded for several months before that, this development came as a shock.
Revenue for BTC, Ethereum reaches 2-year lowest level
In addition to showing that the leading cryptocurrency surpassed Ethereum in terms of monthly mining revenues, the figures also point to a bigger problem. The return from mining has fallen dramatically in dollar terms; however, they are the same currency in volume due to the price decline.
6.25 BTC was the reward for extracting a single bitcoin block at the top. Roughly speaking, it was around $ 431,250 when BTC traded at a price of $ 69,000. Now, however, the miner will now get around $ 120,000 on extracting a single Bitcoin block, which shows over 60% decrease in profitability.
Miner’s incomes today are at their lowest in two years. December 2020 was the last time the numbers were so low, which was just before the historic bull races in 2021.
Ethereum also experienced a similar decline. Also for the altcoin, December 2020 was the last time such low data were registered. This shows that cryptocurrencies can compete with each other in terms of revenue, but their individual growth continues to follow a similar pattern.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and move away from traditional money exchange systems. She is also fascinated by blockchain technology and its function.
