Bitcoin Miners Struggle as Runes Usage Plummets and Profitability Hits All-Time Low
Bitcoin miners are facing tough times as the profitability levels have hit an all-time low following the surge in transaction fees from the launch of the Runes fungible token. The hashprice, which measures projected mining earnings, has plummeted by nearly 72% in BTC terms, leaving miners with minimal returns.
Subscale miners, who operate less resource-intensive mining operations, are particularly feeling the pinch, with many expected to go offline as they struggle to turn a profit. On the other hand, scaled mining operators have been better prepared for the post-halving conditions and are well-positioned to weather the volatility.
The decrease in hashprice coincides with a decline in interest in Runes, as evidenced by a decrease in Runes transactions. While Runes initially dominated Bitcoin transactions, its onchain activity has tapered off in recent weeks, raising concerns about its long-term viability.
Despite the challenges, industry experts remain optimistic about the future of Bitcoin mining. Innovations like Runes and BTC DeFi are seen as welcome additions to the ecosystem, but there is a need for sustained onchain activity and fee generation to support miner revenues.
As the debate over the sustainability of Runes and other new features continues, miners are left to navigate the evolving landscape of the cryptocurrency market, hoping for a resurgence in profitability in the near future.
