Bitcoin-Mining Faces Tough Times
The Bitcoin mining industry is currently navigating through challenging waters, as highlighted by Bit Perfect Solutions in their recent article titled "Bitcoin-Mining steht vor harten Zeiten." According to insights from Jefferies, the profitability of Bitcoin mining experienced a decline in September due to a stagnant Bitcoin price coupled with an increase in network hashrate by approximately 1.7%. As October approaches, miners are expected to face continued challenges despite a modest 5% rise in Bitcoin prices; this gain is likely overshadowed by an anticipated significant hash rate increase of 11%, putting additional pressure on maintaining profitability.
Interestingly, North American-listed mining companies captured more of the Bitcoin network's share than they did in August—22.2% compared to 19.9%. This was attributed to improved operational efficiency and favorable temperature conditions. Marathon Digital emerged as the leading miner producing 705 Bitcoins while CleanSpark followed with 493 produced coins. Analysts also noted that future political developments could potentially benefit the sector amidst these ongoing difficulties.
Rising Earnings for Miners: A Double-Edged Sword?
A report from Newsbit reveals that last week proved lucrative for those keeping the Bitcoin blockchain running but brought less welcome news for users who found themselves paying significantly higher transaction fees—a direct boon for miners' earnings. The introduction of Runes Protocol earlier this year appears central to driving up these costs.
This past Friday saw IntoTheBlock reporting a notable surge—32.4% more—in paid fees within just one week alone, amounting roughly $5 million earned collectively by miners, which suggests increasing activity even amid reduced volatility levels across networks constrained capacity-wise at processing transactions every ten minutes via blocks capped off size-wise around single megabytes each. This competition benefits the highest bidders involved.
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