Bitcoin miners’ revenue grows to $ 40 million a day and has seen a staggering 488% growth since the Bitcoin network was halved in May this year, the latest analysis on the news shows.
After Bitcoin miners’ revenue from block rewards fell to just $ 6.8 million in the months following the halving, they are now in excess of $ 40 million, according to data from analytics firm Blockchain Glassnode. Mining is a highly competitive process aimed at generating new cryptocurrencies by solving complex mathematical puzzles with the help of computers and installed specialized software. By verifying transactions and adding them to the blockchain, miners receive rewards that include transaction fees and a base premium for every block they mine. The block reward is halved every 210,000 blocks mined or every four years.
#Bitcoin the tough bond will soon signal a positive recovery as more miners come back online.
The last comparable event came after December 2018 bear market speculation, which took 164 days to turn positive.
The current mining recovery has lasted 120 days. pic.twitter.com/l2Nmc9RYCHI
– Jan & Yann (@Negentropic_) October 4, 2021
Each halving event reduces the rate of new Bitcoin generation until, in 2140, no more coins are added to the network’s offering.
This is an increase of 488% since the last halving in May this year, just before China cracked down on the mining industry. This is also 185% higher than what was recorded during the pre-2020 halving phase, when miners were paid from $ 14 million a day. Miners have to work twice as hard to enjoy the halved rewards, and the surge in miners’ income described above suggests that there is a silver lining.
To keep going financially, mining companies will have to invest in other machines as block rewards drop. However, it does mean spending more money believing that the company’s long-term future is possible. With this in mind, the increased revenue suggests mining companies are investing in expansion and remain confident about mining, which is also surprising given the tough crackdown on the country’s mining industry. In mid-June, several Chinese provinces in China expelled Bitcoin miners, and the country’s central bank instructed banks and payment platforms to avoid relationships with e-money service providers.
All of this caused miners to migrate out of China, with most of them relocating their operations to North America or Kazakhstan, causing the collapse of both the BTC hash rate and overall computing power, network and mining difficulties. Mining Difficulty is a metric designed to calculate the amount of computational power required to generate a new BTC peak above 25 trillion, while Difficulty is measured using a relative unit that stands at 1 When the original BTC block was mined in 2009 Chinese crackdown, the difficulty level dropped 54% making it twice as easy to find new blocks.
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