The world of cryptocurrencies is developing rapidly. Regarding PoW consensus blockchains, investors are more concerned about Bitcoin mining operations. Also, miners face more and more difficulties in the process. In this context, it is important to note that the amount of Bitcoin held by crypto miners has recently reached a 10-year low. The chart below published by crypto research platform IntoTheBlock shows that miner accumulation is at its lowest levels in recent years.
IntoTheBlock: Bitcoin is evolving and miners have a small role in it
Curiously, the amount of BTC held by miners has reached a 10-year low. At the time of writing, the Bitcoin hash rate was near record highs. The entire mining community only has a total of 1.95 million BTC, one of the lowest numbers since 2010.
Bitcoin hash rate and difficulty were near record highs in February. Bitcoin’s 7-day average hash rate was 191 EH/s. On February 17 this jumped to 220 EH/s. Thus, there was an increase of 15%. This increase in hash rate resulted in a roughly 4.8% increase in difficulty for February. Ergo, a blog of Luxor Technologies’ data platform Hashrate Index, noted:
Bitcoin miners were hashing at the highest difficulty level of all time for about half of the month, so they were earning less Bitcoin per unit hash rate.
This pressure on miners’ margins has caused miners to “sell some of their BTC to cover their operating expenses.” Thus, a higher hash rate and difficulty reduced miner revenues.
February storm
In the top seven publicly traded North American miners, on average, Bitcoin production fell by about 8.6%. This was evident in the bar chart analysis below.
Why are miners worried?
worries, cryptocoin.com It emerged after the last “crypto-decree” of the US President, which we refer to as. Joe Biden urged his management to study and report on the environmental costs and potential benefits associated with cryptocurrencies. Following this, Kevin O’Leary, head of O’Shares ETFs, announced that he has sold all of his crypto mining investments.
But March showed some mercy to these affected miners as the hash rate dropped by 1.5%. At the time of writing, it stands at 189M TH/s. This is a potentially positive development for miners.
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