Bitcoin miners are consistently earning $50 million daily
- 8th April 2021
- Posted by: Hakeem
- Category: CryptoCurrency
Miners at the flagship crypto market are earning record revenues triggered by the growing number of transactions on the blockchain as the flagship Crypto asset gained relevance in global financial markets.
Data retrieved from Glassnode showed Bitcoin miners have been consistently earning more than $50 million per day for the past month.
About a year ago this number was around $12 million – that’s a 4x increase, despite the block subsidy being cut in half.
In addition, it is critical to note that Bitcoin’s average hash rate hit a new all-time high yesterday – crossing a daily average of 178 exahash / sec for the first time in history. Miners keep spinning up machines – hash rate is up only.
What you should know
Bitcoin mining involves the act of solving tasks that come in the form of algorithms in affirming a transaction and fixing it within a block on the blockchain.
BTC miners who successfully mine a block are paid or rewarded in BTC. BTC miners also help in facilitating the security mechanism of the blockchain network by confirming transaction information or data to the Bitcoin ledger.
This confirmation process involves solving complex mathematical problems and a lot of computing power. BTC Miners are successfully rewarded with BTC for their contribution to the ledger based on their proof-of-work.
The flagship crypto asset has reinforced its status as the world’s newest trillion-dollar asset amid a growing number of transactions and the adoption by institutional investors.
That being said, recent data retrieved from Glassnode, a top crypto analytic trading firm, revealed Bitcoin Miners’ net position change metric flashing green as seen in the chart, revealing that miners are holding on to newly mined Bitcoins.
Whilst Bitcoin miners have an increasingly small influence as sell-side entities (when taking daily trade volume into consideration), their spending habits provided key insight into the market bias of some of the biggest bulls in the Bitcoin market.
Overall, in recent times, the Bitcoin market has posted remarkable strength and demand has kept the bullish run relatively in play.