In an interesting piece of information, the revenue earned by Bitcoin miners was slightly decreased in May, with the total figure stacking at $1.45 billion. In April, the figure was pegged at $1.7 billion, which means in the month gone by, there is a drop of 15.01% in the revenue earned by miners.
Although Bitcoin went under a huge correction from its all-time high level of April 2021, the revenue generated by miners is quite commendable. In the face of the huge 36% price correction that Bitcoin experienced in May, the decrease in the revenue figures is not very dramatic.
Between March and April 2021, a 2.5% decrease in the revenue took place, with the highest revenue from Bitcoin mining of $77 million was recorded on April 15, 2021. On the other hand, the lowest figure was recorded on May 29 when the revenue dropped to $26 million.
Cryptocurrency experts and analysts were anticipating huge drops in the mining revenue last month as the debate on the huge carbon footprints of Bitcoin mining came into the limelight once again. Environment activists have started focusing on the large energy consumption required for mining Bitcoin. To make matters worse, Tesla’s CEO Elon Musk announced that the electric car company would not accept cryptocurrency payments. Musk cited Bitcoin’s detrimental impact on the environment as the reason behind the suspension of Bitcoin for payments.
In addition to energy concerns, the authorities’ crackdown in some nations where Bitcoin mining is being done prominently is also leading to some anxiety in the cryptocurrency sector. Many countries, including China, have a crackdown on Bitcoin mining as they see Bitcoin mining as a threat to their financial system and fiat currencies. Authorities in these regions have come up with strict regulations for Bitcoin mining which, in turn, will have an adverse impact on the revenue.
Despite all these developments, the decline in the revenue for the miners is not very discouraging. However, if authorities become more specific about the laws in the future, it could create a problem for big miners, leading to a decrease in the revenue and profitability of the entire sector.