Head to head: Bitcoin Miner revenue surpasses Ethereum, but there is more
The profitability of bitcoin mining has declined compared to Ethereum’s profitability in recent months. Ethereum miners had consistently outperformed bitcoin for almost a year. It is until now when the return from bitcoin mining has taken the lead again.
Bitcoin miners at the forefront
Data show that bitcoin miners have recovered from their ETH counterparts. This has been evident in the closed gap in recent months where Ethereum miners had barely managed to stay ahead. This would continue until June, an uncertain month for everyone involved in cryptocurrencies, and this has in the long run affected the profitability of ETH mining due to the price decline.
Related reading | Mister Coinbase edges? Nano Bitcoin Futures sees low interest
For the previous month, the total amount generated by bitcoin miners had reached $ 656.47 million, while Ethereum’s figures had totaled $ 549.58 million for the same time period. This shows that Bitcoin miners had surpassed Ethereum counterparties by more than $ 100 million for the month of June.
BTC miner revenue surpasses ETH | Source: The Block
This was a shocking development given that Ethereum revenues had actually been ahead of bitcoin by around $ 100 million last month, and larger margins have been recorded for several months before that. So the change has turned expectations of profitability in mining upside down.
Revenues fall to a 2-year low
Although bitcoin had surpassed Ethereum in terms of monthly mining revenue for June, the numbers recorded for both digital assets speak to an even bigger problem. Due to the price decline across the market, the return from the mining business, even though it is the same currency in volume, has fallen significantly in dollar terms.
At most, the reward for extracting a single bitcoin block was 6.25 BTC. This translated to around $ 431,250 at a cost of $ 69,000 per BTC. Currently, the extraction of a single bitcoin block will give the miner a total of around $ 120,000, which represents more than a 60% decrease in profitability.
BTC recovers above $19,000 | Source: BTCUSD on TradingView.com
As such, miners’ incomes have now fallen to their lowest level in almost two years. The last time the numbers were so low was in December 2020, just before the epic bull races in 2021.
Related reading | Snoop Dogg is still bullish on Ethereum despite NFT trades falling 70%
Ethereum has not been spared as it has suffered the same fate. Data show that the last time altcoin gave such low mining revenues was also in December 2020. This shows that although the digital assets can compete hard when it comes to mining revenues, their growth and decline continue to follow similar patterns.
Featured image from Investopedia, chart from TradingView.com
follow Dear Owie on Twitter for market insights, updates and the occasional funny tweet …
