Bitcoin Miners‘ revenue is approaching its annual maximum: why is this happening?

Bitcoin Miners‘ revenue is approaching its annual maximum: why is this happening?

The current Bitcoin value rally has pleased two categories of Krypt market players – investors and miners. Today we will talk about the latter. According to the analytical platform Glassnode, the level of income of the extractors of the cryptovoltaic currency has risen to the values observed before the halving of Bitcoin in May this year. That is to say, even though the award in the crypt currency has decreased, the dollar equivalent of the income of ASIC majors‘ owners has returned to the old heights.

Recall that halving is a planned reduction in emissions, i.e. awards per block, at Bitcoin. The event takes place every 210,000 blocks or approximately four years and is associated with significant financial difficulties for the miners. This is not surprising, because immediately after halving, their revenues are reduced by exactly half.

However, this is precisely the income in the crypt currency. If the latter increases, then the dollar equivalent of financial income may also exceed the pre-halving figures – which happened this time. It should be noted that not only the value of an asset affects the revenue of the minimers, but also other indicators by the type of complexity of the mining, the network hash rate and the load of the latter.

However, the more active the users perform Bitcoin transfers, the higher will be the average commission per transaction. This, in turn, is due to the limited network of cryptocurrencies that can handle approximately seven transfers per second.

We checked the latest data: yesterday the average cost of a BTC transfer was $5.4. This money goes into the pocket of the miners along with a fixed 6.25 bitcoin for each block.

How much do Bitcoin minimers earn

Maintaining a cryptovolta mining business requires a lot of money, as the cost of equipment is not the only thing to do, but also money for its maintenance by type of repair, cooling and electricity. The last point is almost the most important for each miner – that is why most of them are now concentrated in China, where low energy tariffs and close proximity to the manufacturers of mining equipment.

On the topic: How has the coronavirus pandemic affected the mining of Bitcoin?

Fortunately, the miners are doing well now. According to Glassnode, in the last 24 hours alone they have earned over $21 million from the Bitcoin unit awards and user fees. The previous local peak was in May – just before the halving itself on the 12th. At that time, the daily revenue of the miners reached the mark of 20.6 million dollars.

The increase in revenue for the miners coincides with the growth of the hash rate, i.e. the total computing power of all the devices in the Bitcoin network. This is undoubtedly a good sign. However, more and more people are joining the production of cryptographic material, ensuring its security against the so-called 51 attacks.

The increase in the revenue of Bitcoin minimers is noticeable on charts. Here is, for example, the income of the Bitcoin miners in 2020. It is obvious here that the figure went upwards in November, with a significant portion of it made up of transaction fees.

Although November only ended in two thirds, the total revenue of the miners for the month was almost equal to the results of October. The figure now stands at $314 million, 275 million of which were received as a reward for Bitcoin blocks. In comparison, the miners earned the equivalent of 352 million dollars in October.

We believe that this news is definitely positive. It proves that the miners will be able to make a lot of money, even though Bitcoin emissions have been reduced. Well, this confirms the version that nothing bad will happen to the crypto wealth currency even after the last coin is mined.

Judging by what is happening to the BTC rate, the revenue of the miners will continue to increase. This will also be facilitated by the growth in commissions, which is worth waiting for as the popularity of the crypt currency increases.

Look for even more interesting things in our kryptchat for millionaires. Also look in Yandex Zen for new materials that are not on the website.