Bitcoin (BTC) mining: State of the network during COVID-19 in April

Bitcoin (BTC) mining: State of the network during COVID-19 in April

After the crash of the bitcoin (BTC) price in March due to the outbreak of the coronavirus, the network slowly but steadily recovered in April. In this blog article, we will show you the state of the network in the month of April by analyzing several statistics such as the hash rate, network difficulty, and miners revenue. All data were retrieved from Blockchain.com.

Total Bitcoin hash rate

Starting off with the total bitcoin hash rate. This statistic is an estimation of the hash power bitcoin miners produced. Note that the hash rate is estimated using the differences in block times. Although it is an estimation, we can still get an idea of how many miners were active or if there was an influx of new miners into the network.

Bitcoin (BTC) Mining Hash Rate

On the graph, the crash in March is clearly visible. Due to the outbreak of the coronavirus, markets all around the world crashed causing a liquidity crisis. Investors tried to close their positions as quickly as possible leading to crashing prices. Also the bitcoin price dropped significantly. This is most likely the cause for the decision of many smaller miners to halt their operations as it wasn’t profitable anymore with a bitcoin price that low.

Already at the end of March the total hash rate started climbing again. This uptrend was continued into April, setting a high of 118.8 million terahashes per second (TH/s). While the uptrend didn’t continue beyond this level, the hash rate is now at the same level as it was before the crash.

Network difficulty

This same trend is visible in the network difficulty. The difficulty is an automatic mechanism of the Bitcoin protocol that makes sure block times stay around 10 minutes per block. The higher the difficulty, the higher the miner participation is.

Bitcoin (BTC) Mining Difficulty

Since the end of 2017 the difficulty is in a steady uptrend. In March of this year, the difficulty reached its all-time high of 16.5T but sharply dropped shortly after due to the worldwide crashes. The difficulty dropped to the levels of October 2019, which confirms the fact that miners halted their operations temporarily. As the bitcoin price is recovering again, the difficulty showed an uptrend in April, almost reaching the all-time high set in March.

Bitcoin Miners revenue

Sinds the beginning of 2020 miners saw their revenue rise again slowly, after a long period of diminishing revenues. This uptrend was abruptly stopped due to the coronavirus. The mining revenue wasn’t this low since the beginning of 2019. 

Bitcoin (BTC) Mining Revenue

According to the graph’s of Blockchain.com, though, the revenue is now in an uptrend again. The gains in miners revenue can be accredited to the rising bitcoin price and miners starting mining again, as seen in the above two graphs. Especially since the 26th of April the rise in revenue was significant. Within four days the revenue rose from 13.3 million to 17.6 million on the 1st of May.