The money generated by bitcoin mining in the first month of 2023 has grown by up to fifty percent following a brief rally over the weekend. The Bitcoin mining community saw a challenging year in 2022 due to rising energy prices, heightened geopolitical tension, and an extended crypto winter. By December, the money generated from Bitcoin mining had fallen to only $13.6 million.
After months of fighting for their existence, several mining firms were ultimately compelled to shut down their operations. Core Scientific, which was amongst the largest bitcoin mining businesses in the world, has reportedly filed for bankruptcy after recording a net loss of around $435 million during September and December.
After a brief surge in the price of Bitcoin, which coincided with a minimum fifty percent increase in industry income, all of it looks like an ancient past. Through mining incentives and transaction fees, the revenue increased to around $23 million by January 30, up from $15.3 million on the first of the year.
More Network Difficulty Means More Revenue
In the meantime, the difficulty of mining Bitcoin continued to rise even though more miners were participating in the process. The reading on January 21 was 26.64 trillion; however, the most recent assignment was at 39.35 trillion at block height 774,144. This is a 48% increase in the difficulty of mining when compared to the previous reading.
Throughout Bitcoin's history, price increases have consistently followed times of increased network difficulty. If anything like this does occur, it will result in increased revenue for those that mine bitcoin. On the other hand, when prices go down, bitcoin miners stop operating since it is no longer economical to mine. The difficulty of the network is also reduced.
In a similar vein, the hash rate that is used for mining Bitcoin has reached (1) an all-time high. As this article was written, the current hash rate is 311 exahashes per second (EH/s). It is anticipated that the hash rate will continue to rise as many miners reconnect with the network.
How are Bitcoin Miners Fairing in the Crypto Winter?
In light of the fact that crypto currency mining still requires a significant amount of energy, the industry's expansion might only halt if miners adopt more renewable energy sources.
Gridless Compute has just started conducting trials at a new mining location in Malawi. The company's goal is to find a use for the unused energy at the hydroelectric plant in the nation, which is based on rivers.
The extra energy produced from renewable sources may also be utilized by enterprises that mine crypto currency. As an illustration, in 2021, Marathon Digital Holdings purchased surplus electricity from a wind farm in Texas. The wind farm production was able to stabilize as a result, and congestion was avoided.
At the time of writing, Bitcoin was trading at $ 32,125, down 2.7 % on daily basis.