coinedition.com
Pierre Rochard, the Bitcoin Strategist at the US-based cryptocurrency exchange Kraken recently tweeted that the bitcoin mining revenue of December has been back to the pre-halving level.
In his tweet, he shared a graph representing the average daily bitcoin mining revenue from 2016 to 2022.
Notably, it is clear from the graph that from 2016 to 2021, the bitcoin mining revenue had a positive inclination from $2 million in 2016 to $47 million in 2021. However, in the following year, the revenue had a massive decline to $27 million.
Significantly, the data shows that the revenue is again back to $15 million as of the years 2018 to 2019, before reaching an all-time high of $47 million in 2021.
According to the reports, more profits from bitcoin mining were made at the end of 2020, but the profit growth seemingly ended in 2021. For context, during mining, the computer tries to solve complicated logic puzzles to verify transactions. After the completion of the process, the miner receives cryptocurrencies as a block reward.
Statista.com, the analytics platform told that the miners earn profit depending upon some factors including the cost of electricity, transaction fees, etc.
The underlying development is that machines with more computing power – or hash rate – are likely to solve more puzzles, and therefore mine more cryptocurrencies. Whether a miner can make money with this depends on various costs such as electricity consumption during this process, transaction fees, or whether the hardware used is efficient or not.
The miners have not earned too much when compared to the previous years. The bitcoin mining profitability was at its peak in 2015 when the mining provided nearly $3.00/TH per second. However, in 2022, it has declined to almost $0.104/TH per second.