The Bitcoin miner revenue increased to $40 million per day, recording a staggering 488% growth since Bitcoin’s network halving in May this year, according to the latest analysis that we have in our Bitcoin news.
After falling as low as $6.8 million in the months after the halving event, the Bitcoin miner revenue from the block rewards is hovering above $40 million as per the data from Blockchain analytics company Glassnode. Mining is a highly competitive process of creating new cryptos by solving complex mathematical puzzles with the help of the computers and specialized software installed. By verifying the transactions and adding them onto the blockchain, the miners will earn rewards that consist of transaction fees and base rewards for every block they mine. The block reward is halved every 210,000 blocks mined or every four years.
#Bitcoin difficulty ribbon is soon to signal a positive recovery as more miners come back online.
The last comparable event was following bear market capitulation in Dec 2018, which took 164-days to flip positive.
The current mining recovery has taken 120-days. pic.twitter.com/l2Nmc9RYTR
— Jan & Yann (@Negentropic_) October 4, 2021
Each halving event reduces the rate of creating a new BTC until there are no more new coins entering the network’s supply in the year 2140. This represents a 488% increase since the last halving and the current values are still lower from the $60 million peaks BTC miners that are enjoyed in May this year right before china’s massive crackdown on the mining industry. This is also 185% higher than the values recorded in the period preceding 2020 halving when the miners were paid between $14 million per day. Miners have to work twice as hard to enjoy the halving rewards and the rise in miners’ revenue outlined above suggests that there’s a silver lining.
To continue the pace financially, the mining outfits need to invest in other machines like block reward decreases. However, this means that spending more money as well as believing that the long-term future of the business is viable. Following this thinking, the increased revenue suggests that mining businesses are investing in the expansion and remain confident in mining which is also surprising given the aggressive crackdown on the mining industry in China. In mid-June, several Chinese provinces in China expelled the BTC mining operators with the country’s Central Bank ordered banks and payment platforms to avoid relationships with crypto service providers.
All of this resulted in the miners’ mass exodus out of China with most of them relocating their operations to North America or Kazakhstan which led to the collapse of both BTC’s hash rate and the total computing power of the network and mining difficulty. The mining difficulty is a measure designed to calculate how much of the computation power is required to produce the new BTC peak above 25 trillion while the difficulty is measured using a relative unit which stood at 1 when BTC’s genesis block was mined in 2009. Soon after the Chinese crackdown, the difficulty dropped by as much as 54% making it twice as easy to find the new blocks.
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