Bitcoin miners’ revenue in August 2024 fell to $800 million, the lowest since September 2023. During the month, 13,843 BTC were mined, which is more than 10% less than in the previous month.
A drop in miners’ income
August 2024 was the worst month for bitcoin miners this year. The profitability of mining has significantly decreased compared to July, when miners earned $927 million for mining 14,725 BTC. In general, miners’ income is down by more than 57% compared to March 2024, when bitcoin reached an all-time high and profits exceeded $2 billion.
Reasons for the decline
The main reasons for such a significant decline in revenue were the growing complexity of mining, a decrease in the number of transactions, and the April halving, which reduced the reward per block from 6.25 to 3.125 BTC. These factors had a significant impact on mining profitability, especially against the backdrop of rising costs.
Dominance of the largest pools
According to the data, the Foundry USA mining pool mined 1248 blocks, which accounted for 29.10% of the total, and Antpool mined 1074 blocks, taking 25.04%. Together, these two pools control 54.14% of August’s total revenue, which is more than $400 million.
The threat of decentralisation
Such a high level of hashrate concentration in two mining pools is a cause for concern in the cryptocurrency community. Controlling more than 55% of the hashrate could pose a threat to the decentralised nature of bitcoin, which is one of the key principles of this cryptocurrency.
Source of information and photo: Incrypted.