According to data from Coin Metrics, the Bitcoin miners saw a 33 percent increase in their December 2020 earnings. Generating USD 692 million.
The Bitcoin miners achieved a 33% increase in their December earnings. This generated an estimated income of USD 692 million. That’s 33% more than in November. All this, according to data from Coin Metrics.
By the way, the miners‘ revenue continued to rise as Bitcoin recovered more than 300% last year. Trading for the first time on New Year’s Eve, it was above $29,000.
In fact, revenue estimates assume that the miners will sell their BTCs immediately.
Measured by terahash per second (TH/s), the miners‘ earnings nearly tripled in the last three months. It reached $0.284 on Thursday, according to data from Luxor Technologies.
For their part, network fees generated $68.3 million in December. Or almost 10% of total revenues.
According to Coin Metrics, rates were volatile in December, bouncing from $4 to more than $12 throughout the month.
Bitcoin miners‘ monthly earnings. Source: Coin MetricsBitcoin Miners‘ Monthly Revenue Source: Coin Metrics: Coin Metrics
What are Bitcoin miners?
To better understand, the Bitcoin miners are the key figure of the Blockchain that supports this crypto currency. And no, they’re not people, but machines.
The miners work 24 hours a day, seven days a week, to solve computer problems. In exchange for a salary in Bitcoin.
As we know, miners are among the main determinants of Bitcoin’s price.
What happened in November?
According to Glassnode’s graphs, on November 18, $21.2 million was the total daily income generated by the Bitcoin miners.
For the moment, the figure was the highest recorded in 2020. Since similar metrics were only seen in early May.
By then, the miners had come up with a strategy to earn as many Bitcoins as they could before Halving. Connecting state-of-the-art ASIC equipment and as many miners as possible.
Specifically in November, the Bitcoin miners saw a 48% increase in revenue. Generating approximately $522 million.
Analyst expects Bitcoin to soon correct 50%
Increased income should be harnessed
It is worth noting that increases in tariff revenues are important in maintaining network security.
As a result, taking advantage of increased revenues The miners are putting more machines online.
In addition, the miners have ordered so many new machines to capitalize on the period of increased profitability.
Interestingly, Bitmain’s supplies ran out until the third quarter of 2021, even after nearly doubling the price of some models.
Finally, the rising price of Bitcoin favors the miners in the network. Therefore, they expect a continuous growth in revenues.
I leave with this sentence from Publio Siro: „Things are worth what you’re willing to pay for them.