With Bitcoin’s price setting an all-time high in March, miners have benefited greatly.
According to a recent report by blockchain analytics firm Arcane Research, Bitcoin miners received more than $ 1.5 billion in Bitcoin block bonuses and fees last month.
Although mining revenue decreased at the end of the month due to reduced transaction volume, the total sales for the month still set a record.
The end result is close to the prediction from mid-March, when blockchain data firm Glassnode reported that miners were earning an average of $ 52.3 million per day. Record turnover for the day was $ 64.7 million on March 14, the day after Bitcoin’s price hit a new all-time high of $ 61,683.
Mining is how transactions are added to the Bitcoin blockchain. Miners often coordinate with larger miners using specialized equipment to run Bitcoin software. This process provides the network with security as miners lend their computing power to solve cryptographic puzzles. Miners who solve the first puzzle can validate a new batch or block of transactions and receive the newly mined Bitcoin, plus any transaction fees people paid to help boost their transactions. Online.
Currently, miners receive a block reward of 6.25 BTC with a new block mined every 10 minutes. What may be surprising is that the block rewards have been higher. From July 9, 2016 to May 11, 2020, miners earn 12.5 BTC for each block mined. For the previous four years, it was 25 BTC, and for almost the first four years of Bitcoin’s existence the block reward was 50 BTC.
That said, Bitcoin mining revenue is increasing despite the drop in block rewards, shrinking supply has pushed the price up. Indeed, price is the main reason to increase sales. Transaction fees play a much smaller role, with average fees falling in March due to a drop in the number of transactions, according to statistics from Blockchain.com.
Transactions are confirmed every day
Sales are, of course, not the same as profits. But mining profits have been steadily increasing since October 2020, according to statistics from BitInfoCharts. In March, it hit its highest level since July 2019.