Bitcoin

Bitcoin miners face mounting challenges as a combination of increased mining difficulty and a sharp drop in Bitcoin prices leads to record-low mining revenues. On August 4, 2024, Bitcoin's hash rate fell from its peak of 677 exahashes per second (EH/s) on July 25 to 629 EH/s, signaling a significant reduction in mining activity, according to <a href="https://news.bitcoin.com/ru/recordnoe-padenie-dohodov-ot-bitcoin-zastavlyaet-maynerov-borotsya-za-vyzhivanie/">Bitcoin.com</a>. 
The recent adjustments in Bitcoin's mining landscape have placed substantial pressure on miners. As of early August, the hash price, an estimated daily revenue per petahash per second (PH/s), plummeted to a record low of $42.78 per PH/s. This drop follows a 10.5% increase in mining difficulty, which reached an all-time high. Simultaneously, Bitcoin prices fell below $50,000, a steep decline from the recent high of over $70,000. 
The drop in hash rate, accompanied by a decrease of 48 EH/s in hash power since July 25, underscores the challenges facing miners. July recorded the lowest monthly revenues in 2024, with on-chain fees plummeting over 75% compared to June. Since July 5, the average transaction fee has fallen to less than $1.60, with current transfer fees averaging 7.7 satoshis per virtual byte (sats/vB). 
According to Mempool.space, most users today pay between 1-4 sats/vB, with some transactions costing less than $1. Despite the drop in fees, network activity remains high, with over 800,000 confirmed transactions on four occasions since July 21. The number of confirmed transactions consistently exceeds 445,000 per day. 
These developments highlight the increasing pressure on Bitcoin miners as they navigate rising difficulty and fluctuating prices. The combination of record-high difficulty, reduced revenue, and decreased fees signals a turning point for the network. As miners adapt to these conditions, Bitcoin's resilience will likely face its greatest test in the coming months. 
Industry analysts suggest that the recent decline in mining revenue may lead to consolidation among mining operations, as smaller miners struggle to maintain profitability. The competitive landscape may see larger, more efficient <a href="https://ultramining.com/news/en/blockstream-aims-for-bitcoin-profit-with-mining-rig-investment-ahead-of-2024-halving/">mining companies</a> gaining a stronger foothold, potentially reshaping the <a href="https://ultramining.com/news/en/texas-residents-challenge-bitcoin-mining-industrys-impact-on-power-grid-and-communities/">mining industry</a>.

Bitcoin Miners Struggle as Revenue Hits Record Lows Amid Hashrate Decline

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