The mining revenue for Bitcoin and Ether miners has registered a significant dip over the past month falling by nearly 50%. Bitcoin miners made $839 million in June seeing a decline of 42% in revenue compared to May while Ether miners made $1.11 billion with a revenue decline of 52% from the past month.
The mining hashrate of Bitcoin and Ethereum has registered a significant dip over the past month due to the growing Chinese crackdown. The decline in network hashrate of the top two cryptocurrencies has subsequently depleted miner’s profitability as well since the block generation time has increased. For example, the average block time for Bitcoin has increased from 10 minutes to over 20 minutes owing to decreased miner capacity.
Bitcoin Mining Difficulty Sees Biggest Adjustment
China was the biggest crypto mining hub in the world accounting for more than 50% of mining operations and hashpower input. The recent crackdown considered by many as the strictest to date has led to most of the mining farms either completely shutting their operation or relocating to countries such as Kazakistan and North America. The sudden decline in mining operations in China has led to a 50% decline in the Bitcoin mining hash rate and a similar decline in the Ethereum network’s hash rate as well.
Bitcoin saw its biggest mining difficulty adjustment in 11 years at around 25%. Analysts believe the network hashrate would eventually return to normal levels once Chinese miners complete their migration to other countries. At the moment a majority of the mining machines haven’t been restarted since they are either being shipped or waiting for government clearance.
The Chinese crackdown on crypto mining is being seen as a welcome step by many analysts and believe it would help the Bitcoin network become more decentralized. Micro strategy CEO Michael Saylor called China’s action a trillion-dollar mistake.