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Once again, Bitcoin miners went significantly lower in terms of monthly revenue, raking in only about $472 million in November.
Bitcoin (BTC) mining continues to prove unprofitable as monthly revenues keep going down from previous values. According to data studied by The Block Research, the month of November saw Bitcoin mining revenue dwindle by almost 20% from its October value to reach a two-year low of 472 million.
Bitcoin Mining Revenue Suffered in November amid Various Market Difficulties
Bitcoin mining revenue has been steadily on a decline, albeit for many reasons. One such reason is the price of the flagship cryptocurrency. BTC price hovered around the $19,000 mark for a while, before the collapse of the FTX exchange finally caused it to slump below $17,000. Expectedly, this translates to less potential profit from block rewards.
Also, it has become increasingly difficult to get affordable energy to run efficient mining platforms. And that is largely responsible for how the cost of Bitcoin production recently hit all-time highs.
Therefore, with the prevalent poor market condition and increased demand for computation, the continuous fall of the mining revenue is not exactly surprising.
Meanwhile, there might be an interesting twist to the story. The reduced revenue has put a great amount of pressure on miners, causing them an unprecedented amount of losses on the roll. But there appears to be a glimmer of hope at least. This is considering that Bitcoin hashrate also continues to go down.
Can Miners Be Profitable?
Despite the mining revenue situation, miners are faced with the reality of having to stay in business and make a reasonable amount of profit. But considering the average cost of electricity globally, not many mining platforms are presently ‘profitable’.
Available data also suggests that the cost of producing Bitcoin ($19,356 per unit) has surpassed its spot market value ($16,877 per unit). So, Bitcoin miners are left with no option but to find more efficient energy sources and the cheapest mining devices on the market.
As of publication, some countries with competitive energy rates include; Qatar, Iran, Cuba, Kyrgyzstan, Venezuela, Russia, Libya, and Saudi Arabia.