If there is one category of players systematically affected by the bear market, it is the crypto miners. According to data from Block research, the revenue of mining players is $472 million in November 2022. This represents a 20% drop from the previous month. The continued decline in revenue adds to the long list of challenges miners have faced this year.
Declining incomes for miners
2022 is undoubtedly a very difficult year for the crypto ecosystem. It is even more so for crypto mining players.
About 97% of this revenue, or $460.32 million, came from blockchain rewards. Only 2.60%, or $12.32 million, came from transaction fees.
November’s miners’ revenue may seem large, but it represents a 20% drop from the previous month’s revenue. Indeed, in October 2022, miners’ revenues were valued at $582.4 million.
One of the reasons for this drop in revenue is the drop in the overall price of cryptocurrencies. Indeed, bitcoin was trading around $20,000 in October 2022. In November 2022, the price of bitcoin dropped to $17,000. Thanks to the collapse of the FTX exchange.
The drop in Bitcoin mining revenue comes as Bitcoin operators are facing huge challenges around the world.
2022, the year of difficulties for crypto miners
In addition to declining revenues, mining operators are facing enormous difficulties, sometimes resulting in bankruptcy.
In the United States, and more specifically in New York, mining is now banned for two years and the operators in service are having to spend millions to build noise fences to cope with social pressure.
In Paraguay, the legality of mining is still at the center of a pingpong between the head of state and the parliament.
With Ethereum’s move to proof of Stake, the sometimes unfounded accusations about the carbon impact of Bitcoin mining have multiplied. Some analysts have even gone so far as to call Bitcoin an absolute failure.
Mining is essential to the existence of the cryptocurrency. That’s probably why players like Binance are trying to raise this sector. Until the good times come to the market, mining operators are going to have to tighten their belts. We hope they do.
I dream of a world where every citizen has total control over themselves, including their finances. I believe that Bitcoin is one of the tools that will achieve this revolution. Since 2019, I am learning about this cryptocurrency and spreading the word around.