Hashprice, a major metric used to measure miner’s income, is currently walking near a five-year-old, according to the hashrate index-a reminder of how difficult the mining business is.
In simple terms, the measure is that income miners can be expected in each unit of computing strength, defined by each petahash (pH/s). It can be denominated with the US or BTC dollars, though it is most commonly quoted in USD for practical comparison.
Currently, Hashprice took a $ 44.00 ph/s, slightly higher in August 2024, when Bitcoin reached $ 49,000 in the middle of the yen to bring trade. Currently, Bitcoin is trading around $ 84,000.
Despite the higher BTC prices, the miner’s income deteriorated, painting a terrible picture of the mining industry as a whole after the recent split of the event that cut the rewards in half. Increasing competition, increased mining difficulty, lower transaction income, and energy spiking costs have added more pressure to the income.
However, not all bad. Around $ 44.00 pH/s level, depending on what type of mining miners are used, miners can still be near or to Breakeven, even far from 2021 bull run mining.
Looking forward, market conditions deteriorated, motionless bitcoin prices, and geopolitical uncertainty, such as potential tariffs that affect mining operations, can create additional headwinds for the industry.
This is reflected in the performance of Valkyrie Bitcoin Miners ETF (WGMI), which drops 50% year-to-date as the BTC fell about 10%, emphasizing the challenging environment facing the mining sector.
It makes sense that miners are increasingly pivoting other income streams, such as reality computing power for artificial intelligence.
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