Cryptocurrencies have gained immense popularity in the last decade, with Bitcoin as the flagship representative. Jednak z tygodnia na tydzień obserwujemy wahania, które wpływają na zarobki tzw. “górników”. Recent days have brought one of the most drastic declines in 2023, affecting their income and strategies.
In the world of cryptocurrencies, miners play a key role, maintaining the network and creating new blocks. Unfortunately, the recent drop in the price of Bitcoin [BTC] has brought a significant reduction in their profits. According to data presented by the analytics firm Glassnode on August 19th, total transaction fees paid to miners fell to the lowest level in the last 5 months, reaching $21,256. This decline was even worse than the previous record set over a month earlier.
What’s surprising is that the fee drop occurred even though Bitcoin recorded its steepest decline in 2023 in the past week. Data from CoinMarketCap reveal that the currency experienced a 11% loss over the week.
Miners depend on conventional currencies to finance the increasing costs of equipment and infrastructure. Therefore, they often exchange their BTC assets for cash. However, the current price collapse has hit their profits hard. Charts illustrate how sharp this decline was after a period of growth. Perhaps such fluctuations forced them to reorganize their liquidation strategies.
CryptoQuant research indicates that the amount of BTC held by miners has significantly increased over the last week, creating a negative correlation with the price. As a result, many miners decided to accumulate resources, waiting for better times and higher prices.
Although the mining sector is full of surprises, it’s worth noting the steady increase in the overall computing power (hash rate) of Bitcoin over the years. Higher computing power guarantees the security and decentralization of the blockchain, protecting against attacks. However, increasing computing power requires the installation of modern and costly equipment. Due to the drop in revenue, less efficient miners may be forced to shut down their operations.
Cryptocurrencies are complex, and their dynamics often unpredictable. Recent events show how important it is to monitor the market and adapt to its changing conditions. Bitcoin miners, despite difficulties, still play a key role in the cryptocurrency ecosystem. We’ll see if they can survive the current challenges.
