Bitcoin mining revenue has brought huge profits to crypto companies such as:

Bitfury, Bitmain, AntPool, Core Scientific Inc, Marathon Digital Holdings Inc, Riot Blockchain Inc.

over the years.

But in the past four months, starting in May 2022 when cryptocurrency prices hit new lows buoyed by the collapse of the TerraUSD (UST) stablecoin that underpinned the Terra ecosystem, mining revenues entered a downward spiral.

Despite a 10% increase in revenue from $597.35 million in July to nearly $657 million in August, according to Coin Metric data, revenue from the largest cryptocurrency by market capitalization remained well below the $1 billion threshold that miners are accustomed to. 2021.

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Given how mining returns are calculated, much of the decline was attributed to Bitcoin’s relatively smaller price range throughout the eighth month of the year.

Mining revenue is calculated by multiplying the total number of bitcoins earned as rewards by the price of bitcoins over a given period.

In August 2022, Bitcoin traded in the price range of $1,600.79 and $2,5135.59 after the month’s open and close at $23,336.72 and $2,049.76, respectively.

YChart data showed that the highest daily earnings of bitcoin miners were $24.65 million on August 19.

Bitcoin Mining Revenues Hit Year-on-Year Low:

Like most of the months before August, bitcoin mining has seen an annual decline in revenue.

Mining revenue in August 2021 was about $1.4 billion, and the total reward earned from the last month was down 53%.

During this period, bitcoin traded in the range of $37,458 and $50482, according to CoinMarketCap data.

Why are miners shying away from Bitcoin?

With the transition of Ethereum to the Provisioning Network (POS), Bitcoin remains the only currency based on the Proof of Work (PoW) mechanism.

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Therefore, it is possible for miners to rush from mining Ethereum to mining Bitcoin.

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But it seems that the shift is not enthusiastic enough as Bitcoin mining revenues are not attractive enough.

Elman Chazhev, CEO of Farcana, a metaverse and blockchain gaming company, said:

Currently, the most efficient equipment in the bitcoin mining market with average electricity prices is showing a 50/50 profit.

That is, 50-60% of the profits go to electricity bills, and the rest remains in the hands of miners.

In conclusion, it can be said that the current Ethereum miners will not move to Bitcoin until after the Ethereum transition to the PoS mechanism and also provided that the rate of difficulty of hashing the Bitcoin network decreases, and it returns to what it was in the middle of 2021 and if the market becomes bullish.

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