Bitcoin Mining Economics Improve in November
Hashprice Rises 5% as Rally Outpaces Network Hasrate
According to a research report by JPMorgan, the hashprice, a measure of daily profitability for Bitcoin (BTC) miners, rose 5% from the end of November. This increase is attributed to the rally in the world’s largest cryptocurrency outpacing the rise in the network hashrate, a proxy for competition in the industry and mining difficulty.
Network Hasrate Increases 6% Month-to-Date
The network hashrate has increased 6% month-to-date to an average of 773 exahashes per second (EH/s), the bank noted. This growth is significant, as it indicates a rise in the level of competition among miners and a potential increase in the overall mining difficulty.
Miners Earn Highest Daily Block Reward Revenue in Seven Months
Miners earned about $57,300 in daily block reward revenue per EH/s over the first two weeks of December, analysts Reginald Smith and Charles Pearce wrote. This is the highest level in the last seven months, but is still about 40% below pre-halving levels.
U.S.-Listed Miners Account for 29% of Global Network
The combined hashrate of the fourteen U.S.-listed miners the bank tracks has increased almost 94% year-to-date to 222 EH/s and now accounts for around 29% of the global network, the bank said.
Total Market Cap of U.S.-Listed Miners Falls 4%
The total market cap of the miners the bank tracks fell 4% or $1.5 billion, having increased more than 50% following the U.S. presidential election.
U.S.-Listed Miners Trading at Two Times Proportional Share of Block Reward Opportunity
The bank estimated that the U.S.-listed miners are currently trading on about two times their proportional share of the four-year block reward opportunity.
Conclusion
In conclusion, the hashprice for Bitcoin miners has risen 5% in November, driven by the rally in the cryptocurrency market outpacing the rise in the network hashrate. Miners are earning the highest daily block reward revenue in seven months, but are still below pre-halving levels. The U.S.-listed miners account for 29% of the global network and are trading at two times their proportional share of the block reward opportunity.
FAQs
Q: What is the hashprice?
A: The hashprice is a measure of daily profitability for Bitcoin miners.
Q: What is the network hashrate?
A: The network hashrate is a proxy for competition in the industry and mining difficulty.
Q: How much did miners earn in daily block reward revenue per EH/s in December?
A: Miners earned about $57,300 in daily block reward revenue per EH/s over the first two weeks of December.
Q: What percentage of the global network do U.S.-listed miners account for?
A: The combined hashrate of the fourteen U.S.-listed miners the bank tracks accounts for around 29% of the global network.
Q: How much did the total market cap of U.S.-listed miners fall?
A: The total market cap of the miners the bank tracks fell 4% or $1.5 billion.
Q: Are U.S.-listed miners trading at a fair price?
A: The bank estimated that the U.S.-listed miners are currently trading on about two times their proportional share of the four-year block reward opportunity.
