Bitcoin mining revenue is the lowest in two years, and the hash rate is declining

Revenue earned by Bitcoin (BTCMiners fell to a two-year low on weak market performance and increased algorithmic demand amid increasing network difficulty. However, the steady decline in the bitcoin hash rate over the past month has allowed miners to recover losses.

Total bitcoin mining revenue — rewards and transaction fees — in US dollars dropped to $11.67 million, a number last seen on November 2, 2020, when bitcoin was trading at around $13,500.

While the current market price of around $16,500 indicates a clear increase in mining yields, factors including mining difficulty and high energy prices are contributing to the decline in income in dollar terms.

Adding to the above, the difficulty of mining a bitcoin block has risen to an all-time high of nearly 37 trillion — forcing bitcoin miners to expend more energy and computational power to stay competitive.

However, over the past three months, the hash rate of the Bitcoin network has been steadily declining. The hash rate is 225.9 exahashes per second (EH/s), which is down 28.6% from 316.7 exahashes per second on October 31, 2022.

The hash rate is a security measure that helps protect the Bitcoin network from double spending attacks. However, given the grand scheme of things, temporary measures taken by the community include acquiring cheaper mining hardware and relocating to jurisdictions with lower energy prices.

Related: Bitcoin miners are looking to software to help balance the Texas network

New York City Mayor Eric Adams believes that the goal of making New York a cryptocurrency hub can be combined with statewide efforts to reduce environmental costs related to cryptocurrency mining.

Adams said during the unveiling that the city will work with lawmakers to find a balance between the development of the crypto industry and legislative needs.