Company updates

How to Get More with Bitcoin: Bitcoin Price, Difficulty and Miners Revenue

, October 10, 2014

When analysing Bitcoin market price, the miners’ revenue and the mining difficulty, certain consistent patterns become quite evident. Miners revenue flow highly resembles the development of the market price, indicating that the market price significantly depends on the miners’ rewards. The higher the reward, the higher the price. For example, the peak of the BTC price in December 2013 corresponds with the elevation of the miner’s revenue within the same period. Although the miners revenue echoes with the overall features of the market price, the first one is much more volatile, whereas the market price shows more stability and does not demonstrate such drastic and frequent change.

Since January 2014, we observe gradual decline of BTC market price and the miners revenue. This tendency is mostly caused by the significant increase of the mining difficulty. Comparing to January 2014, current Bitcoin mining process requires much more computing power, which results in higher expenses, namely electricity costs. The current mining difficulty (October 1, 2014: 34,661,000,000) remarkably exceeds the mining difficulty of January 1, 2014 (1,180,900,000). The difficulty has increased by nearly 30 times (29,3513421966297 to be precise). Therefore, as the difficulty increases, the mining revenue drops simultaneously bringing down the market price. Bitcoin price, the mining difficulty and the miners revenue show true features of interdependence and require constant analysis and research.

Related

Company updates

The Best Blockchain Events Worth Visiting in Summer 2019

You can spend summer with benefits for your understanding of blockchain technology and cryptocurrencies. Learn about the innovations and developments in the sphere by joining the events bringing specialists, enthusiasts, and everyone interested in the blockchain technology together to share experience and collect new insights.   Blockchain Summit Singapore

Mar 04, 2019 | 23 min read
Company updates

$10k Trading Competition: A Thanksgiving Holiday Spree

Celebrating Thanksgiving with a Trading Competition with the biggest-ever prize! This time the reward pool will be $10,000! Excited? Read on!

Nov 22, 2021 | 5 min read
Company updates

CEX.IO Partners with Checkout.com to Improve Global Payment Processing

We’re thrilled to announce CEX.IO has partnered with Checkout.com to take payment processing to the next level. Learn more in this blog post, or head over to CEX.IO to experience the partnership in action.

Aug 09, 2022 | 2 min read