Bitcoin Mining Despite the fact that BTC is comfortable sitting at over $100,000, it’s not easy.
Data from Luxor’s hashrate index shows that previous June trading fees have fallen below 1% of miners’ total block rewards. This is the lowest since 2022. The dip was first reported Theminermag.
The month is not yet complete, but the downward trend suggests that the situation is not getting better for miners.
Bitcoin miners are rewarded by processing blocks containing transactional data and adding them to the blockchain. For each block processing, miners receive 3.125 BTC (over $327,000 at current prices) along with transaction fees.
However, fewer people use the Bitcoin network, so trading fees remain low. In other words, miners will reduce their income with each successful block win.
According to BitinFocharts, the average cost of trading Bitcoin is currently $1.45. Transaction costs usually remained low at $1.50 this year and the end, but spikes have increased from time to time thanks to the surge in activity in Craze, a blockchain response to NFTs, like the Bitcoin ordinance.
Miners are usually warehouse industrial businesses filled with specialized computers, which were hit hard earlier this year by the decline in Bitcoin prices, and in some cases were forced to sell more coins to keep their business up.
Things seemed to be getting better as Bitcoin prices have risen again in recent months, but blockchain data shows that recently processed blocks contain small amounts of transactions. it’s been Flag included Square CEO and Payments entrepreneur Jack Dorsey believes BTC should be used more widely for everyday payments, not as a valuable store.
100%
– Jack (@jack) March 31, 2025
Bitcoin was recently trading at $104,648 at Crypto data provider Coingecko showafter a drop of nearly 4% in 24 hours. The coin has recovered significantly since falling below $75,000 in April. This is a dip that appears to have been caused by President Trump’s tariff announcement.
However, according to CJ Burnett, the chief income officer of Compass Mining, the rise in the price of assets remains insufficient to alleviate concerns among miners. “Despite the rising prices of Bitcoin, mining revenues remained at an all-time low since half of 2024,” he said. Decryption.
Half of it is a square event burned into a Bitcoin code. Every four years, mining compensation is reduced by half. The last half took place in April 2024, cutting the rewards from 6.25 BTC.
Normally, Bitcoin prices tend to skyrocket after half a year to 18 months, Decryption Previously It has been reported The coin is behind compared to previous cycles.
Still, the miner said Decryption The price of BTC should not be an issue if you are performing lean and efficient operations. Barnett added that miners can survive difficult times with “the most efficient mining hardware and competitive electricity costs.”
Mihir Bhangley, co-founder and partner of Sangha Renewables, a company that turns renewables into bitcoin mining operations, added that the movement of volatile BTC prices is all part of the game.
“The profitability of Bitcoin mining always depends on the cost structure rather than the price of Bitcoin,” he said, adding that investment in the best hardware “will ensure long-term, resilient returns regardless of the market cycle.”
edit Andrew Hayward