Bitcoin miners are facing a double whammy of poor profitability with income dropping to the lowest level this year. The drop, which experts largely cite to the dip in Bitcoin prices and increase in operational costs, signals a tough moment for the industry.

Compounding their woes, the revenue of Bitcoin miners have halved. This market decline marks a major change in the economic realities of Bitcoin mining operations.

Bitcoin mining serves a critical role within the Bitcoin network. Miners are an essential part of the network that verify and secure every transaction, helping to protect the integrity of the blockchain.

The reason for the present hardship experienced by miners is due to many reasons. The price of Bitcoin has been extremely volatile, which has led to large fluctuations in revenue earned from mining rewards.

At the same time, the costs of mining, from electricity to hardware upkeep, have escalated. This perfect storm of declining revenue and rising costs has turned up the pressure on miners, dramatically narrowing their profit margins.

The ramifications of this crash go far past the fate of one particular mine’s operation. Lower profitability may lead to reduced investment in new mining infrastructure. This reduction in resources could be damaging to the long term security and efficiency of the Bitcoin network.

Market entry for smaller mining operations is made difficult due to stiff competition from larger, established companies. This continued challenge is pushing the industry towards consolidation.

With the Bitcoin market landscape in a constant state of flux, miners must navigate the perils ahead by evolving to conditions that ensure their survival. More than ever, finding new ways to use less energy is important. Further, both smart hardware investments and finding new formula-independent sources of revenue will be critical to the game plan ahead.