Bitcoin mining revenue is down 23% in June

 The miners seem to have spent the month of June struggling as their revenues fell by 23% during the month of June, as a result of lower network fees and lower bitcoin mining rewards that occurred in mid-May.

Revenue decreased from $ 366 million in May to an estimated $ 281 million in June, the lest for a period of three months according to CoinMetrics, and estimates assume miners are selling bitcoin instantly.

Mining is the process of adding confirmed transactions to the Bitcoin blockchain through a set of equipment and programs dedicated to this, so that the network rewards miners with bitcoin and the Bitcoin reward is estimated at 6.25 Bitcoin for each new block.

Austin Storms, founder of a mobile mining company, BearBox, stated that the June comparison to May is unfair as the 11-day May bonus was 12.5 BTC, while in June this bonus fell to 6.25 BTC.

After the split happened, the "Mempool" of bitcoin increased dramatically, causing transaction fees to increase as well.

“Mempool” acts as a kind of holding repository for verified transactions which must be included in new blocks by miners.

With mempool unloaded at the end of May and early June, the monthly mining revenue estimates reflect the subsequent decline in transaction fees.

Transaction fees generated only $ 12 million in June, accounting for 4.3% of monthly revenue, down from a 12-month high of 8.3% in May.

Given that the subsidy per block remains steady until 2024, the growth in mining revenue can only come from two sources, which have either an increase in network fees or an increase in the bitcoin price.