More and more customers are telling us that Bitcoin is getting harder to mine. Is that really the case?
We have found that Hashprice has hit a new low. Let’s explain what Hashprice is first: Hashprice, a term coined by Luxor, refers to the expected value of 1 TH/s of hashing power per day. The metric quantifies how much a miner can expect to earn from a specific quantity of hashrate. You can denominate Hashprice in any currency or asset, but we display the metric in terms of USD or BTC (sats).
For example:
$0.20 per terahash/second per day ($0.20/TH/s/day)
475 satoshis per terahash/second per day (475 sats/TH/s/day)
Hashprice is a function of four inputs: network difficulty, Bitcoin’s price, block subsidy, and transaction fees. Bitcoin’s Hashprice will change with every new block added to the blockchain. Luxor’s Bitcoin Hashprice Index uses a 144 lagging SMA to account for transaction fees.
Hashprice is positively correlated with changes in Bitcoin’s price and transaction fee volume and negatively correlated with changes in Bitcoin’s mining difficulty.
From this chart, one can see the situation Bitcoin miners are in. Especially after the hype around Ordinals &Runes subsided, Bitcoin mining revenue mainly relies on block rewards. Currently, including transaction fees, the block reward is only about 3.2 BTC, which is quite challenging. Many mining farms have chosen to shut down or switch to AI data center projects.
Large mining farms and publicly traded companies in the US have better financial capabilities. They have good financing channels, so they can hedge against periods of low revenue. But what about small and medium miners? The answer lies in altcoins.
With the official announcement by Marathon, the market has seen a significant shift. More and more small and medium miners are joining the altcoin mining game. Among them, Kaspa is the most representative token, with many miners also trying Dogecoin and Litecoin.
In fact, almost all of the top 15 miners in the mining revenue rankings are Kaspa miners. The world is constantly changing, and we must adjust our strategies accordingly. Large companies can leverage financial instruments to get through tough times, but small and medium miners need to keep up with the times, regularly review, and adjust their mining strategies to get a share of the mining game.
If you need Kaspa or Dogecoin miners, please contact the MinerSource team.
