Bitcoin miner revenue reaches an unprecedented level
Mining the world’s leading cryptocurrency is, as of present, more rewarding than it has ever been the crypto’s history
Bitcoin miner revenue is through the roof as the crypto corrects, having rallied to a new all-time high briefly over the weekend. The Bitcoin market is presently flourishing as more and more people are joining the bandwagon. According to data from crypto analytic firm, Glassnode, mining the cryptocurrency is now more rewarding than ever.
The data firm compiled a report earlier this week stating that Bitcoin miner revenue had surged to a record high of 52.3 million per day. This means miners of the flagship crypto cumulatively realise up to $52.3 million daily. Glassnode further explains in its weekly insights newsletter that the achievement is generally good for the Bitcoin ecosystem.
The analytics firm argues that the upswing in miner revenue is “positive for the assurance of continued security for the Bitcoin protocol”. Glassnode believes that the miners will continue generating more of the crypto asset considering the reward is atrractive. This, in turn, helps the overall network as more of the asset is mined.
Beyond the worthwhile Bitcoin mining experience, however, lies a serious concern. The Bitcoin mining process has, in the past, been criticised particularly on two ends – energy consumption and environmental effect.
Research by Cambridge University’s Centre for Alternative Finance revealed that Bitcoin miners approximately swallow up 14.44 GW or 128.77 terawatt-hours. This postulation is also backed by a Bitcoin sustainability study from Digiconomist that claims the carbon footprint of mining Bitcoin is equivalent to that of the city of London.
Bitcoin miners are currently taking up block rewards of at least 6.25 BTC. Before May last year, when Bitcoin halving happened, miners were getting a subsidy of about 12.5 BTC. Glassnode explains in the newsletter that miners are still making huge revenues despite this massive cut. The firm attributes this to the surging Bitcoin prices that have almost doubled since the start of the year.
Bitcoin is, as of writing, changing hands at around $56,165 translating to a year-to-date leap of almost 95%. The analytic firm also points out that transaction fees on the network are high, which implies sending Bitcoin costs more. Since transaction fees also make up part of the miner’s rewards, it is safe to conclude that miners are at present making more money.
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Sam Grant, @KhareemSudlow