Bitcoin’s hashrate increase is not helping miners in any way, here’s why
- Bitcoin miners were found facing some challenges with the increase in BTC’s hash rate.
- The number of rigs required to mine Bitcoin increased, but it caused a decrease in miners’ profits.
Over the past few months, Bitcoin miners have reaped the benefits of BTC’s short-term rally. Interestingly, in addition to BTC’s price, the hash rate of the network has also increased.
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“hashes” it out
Due to the increasing hash rate, the demand for ASIC rigs required to mine Bitcoin has also increased.
As #Bitcoin hashrate pushes to new ATHs, we can estimate the number of operational ASIC rigs required to generate that hash power.
Using three latest generation Antminer rigs, we estimate a fleet of
– 5.5M S17s
– 2.8M S19 Pros
– 🔴1.2M S19 XP Hyd pic.twitter.com/EQabTeA7mS— glassnode (@glassnode) March 5, 2023
This has caused the total investment behind Bitcoin mining to rise by a sharp number which in turn has affected the profitability of miners.
According to glassnode’s data, ASIC profit per day has dropped significantly. Due to the decrease in ROI (Return On Investment) for miners, the income generated by them has decreased by a significant margin.
Source: glassnode
Over the past week, the amount of revenue generated by miners has dropped from 1065.06 BTC to 986.026 BTC. However, despite the falling revenues, most of the major mining pools remained unaffected.
At the time of writing, three large mining pools dominated the sector, namely Foundry USA which took 33.3% of the entire mining share. It was followed by Antpool and F2Pool, which captured 17.8% and 14.9% of mining shares respectively.
Source: BTC.com
Foundry USA managed to mine 7577 blocks in the last six months. At press time, it managed to deliver 2.29% of transaction fees as a block reward.
On the other hand, Antpool mined 5,123 blocks in the same period. However, F2Pool failed to do very well and was only able to mine 4,084 blocks in the last six months.
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The monthly blocks mined by F2Pool decreased from 761 in October to 615 in March. If this trend continues, F2Pool may lose its position as the third most successful mining pool.
Source: BTC.com
That said, it remains to be seen how these mining pools manage to perform, given the high number of ASIC fleets required.
Obviously, if the Bitcoin price rises and increases further, it will bring some relief to miners.
However, at press time, BTC was trading at $22,400 and the price had fallen by 3.85% in the past week.
The volume followed and fell from 22.78 billion to 13.75 billion in the same period.
Source: Sentiment
