Despite the fact that Bitcoin’s price has become more volatile as a result of the growing governmental crackdown, mining revenue has remained stable, progressively returning to profitability.
Bitcoin mining revenue increased 179.4 percent in 30 days between June 27 and July 26, according to statistics given with usby cryptocurrency trading simulator Crypto Parrot, from $13.06 million to $36.49 million. The total revenue for the first 30 days was $841 million.
Bitcoin’s ability to be resilient in the face of negative headlines is reflected in the increase in revenue. Notably, sales continue to be behind earnings from earlier this year.
The $841 million in revenue is down 51.47 percent from the $1.7 billion in revenue between March 27 and April 26. Bitcoin experienced a strong rally throughout this time, with institutions pouring money into the market. Miners also made $1.2 billion in December 2017 (during the previous Bitcoin Bull Run).
The last 30 days’ revenue movement also displays Bitcoin’s historical attribute. When a stock’s price falls, so does investor interest. Miners have fewer transactions to confirm at this time.
Bitcoin had plummeted over 50% from its all-time high price of $64,800 by the end of June. As a result, over the course of the era, miners got the lowest returns. In other news, Bitcoin began a surge last week with a target of $40,000 in mind. As a result, mining revenue has increased as well.
The Chinese crackdown has had a negative influence on mining operations.
It’s worth noting that the mining revenue was generated aftermost activity had ceased. China’s regulators announced a crackdown on bitcoin mining, claiming that the cryptocurrency might destabilize the financial system. Notably, the country has the highest share of mining, but as a result of the crackdown, operators have relocated to other countries.
Surprisingly, other countries, such as the United States, have expressed interest in hosting the Chinese miners. Some of the miners are establishing businesses in other Asian countries. As a result, the revenue could indicate that the mining industry is re-establishing itself in the wake of the Chinese government’s setback.
The carbon footprint impact has been one of Bitcoin’s critics. However, according to the most recent data from the Bitcoin Mining Council, the asset is increasingly reliant on sustainable energy sources.
In addition, the possibility that electric vehicle manufacturer Tesla will accept Bitcoin as a payment mechanism has sparked a comeback. Tesla halted Bitcoin payments in May, citing environmental concerns.
Elon Musk, the CEO of Tesla, recently declared that his goal is to see Bitcoin prosper, while also stating that the asset has a bright future.