Are Bitcoin miners on the brink of disaster ? The drop in revenue that could change everything

The Bitcoin miners are in a critical situation, with revenues plunging to levels not seen in over a year. September was particularly brutal, with only $816 million generated by all miners. But beware, that’s not all. Transaction fees have also plummeted, reaching a historic low of $13.86 million. A catastrophe that threatens the entire network ?

The vertiginous fall of miners’ revenues : just the beginning ?

Since the last halving of April 2024, where block rewards fell from *6.25 BTC to 3.125 BTC, miners have seen their margins melt away like snow in the sun. Yet, computing power on the network continues to rise, reaching a **record hashrate of 643 EH/s. But to what end? More power, fewer rewards, it makes no sense. According to **JP Morgan, the average profitability of miners plunged by *6% in a month. Want to mine? Good luck, margins are shrinking visibly.

Here is a summary table of key Bitcoin mining data for September 2024 :

Metric	Values (in million $ or EH/s)	Observations
Total miner revenues	$816 million	The lowest in over a year
Transaction fees revenue	$13.86 million	Historically low transaction fees
Operational costs	$650 million	Significant increase in operating costs
Global hashrate	643 EH/s	Stagnation after a brief rise
Profitability per EH/s	$16,100/EH/s	6% decline in profitability
Reward per block	3.125 BTC	Reward halved since April

Hashrate stagnates : a sign of lost confidence ?

As miners struggle to keep their heads above water, the hashrate (total computing power dedicated to the network) shows worrying signs of stagnation. In fact, despite a recent uptick in August, it has fallen back to mediocre levels, casting a serious doubt : are miners beginning to lose confidence in the future of Bitcoin? With falling prices and market instability, some of them are wondering if it’s still profitable to invest in ultra-expensive equipment. And if miners throw in the towel, what will become of the network’s security ?

Miners trapped : more costs, less profit

The numbers don’t lie: mining is becoming less and less profitable. Operational costs are soaring, hitting peaks in September with $650 million spent just to keep machines running. So, between skyrocketing energy prices and a wobbling crypto market, miners find themselves at a dead end. Why continue burning money for so little return? Many could simply unplug their machines and move on.

Bitcoin on the brink : will miners quit ?

With a *4 % drop in Bitcoin’s price in 24 hours, miners who still had a glimmer of hope might well change their minds. Every day, more and more are asking whether it’s worth it. If this trend continues, the hashrate could plunge, compromising the security of the entire network. Think this is a disaster scenario? Just wait to see what happens if Bitcoin’s price keeps falling. The network could face a risk of *centralization, a hard blow to the very ethos of crypto.

A dark future for Bitcoin mining ?

As miners reassess their strategy, a burning question remains: how long can they hold out under these conditions ? Is Bitcoin mining still viable ? Caution is advised, but if the market doesn’t recover, the answer might be a resounding no.

Don’t stay too optimistic. The world of Bitcoin is more unpredictable than ever, and miners might be the first to pay the price.