- Bitcoin’s recent surge in price proves to be profitable for miners on the network
- Bitcoin miners earned a new record high of $4 million in revenue in just under an hour according to Glassnode, a blockchain analytic firm.
- The reason for the increase in earning power may be attributed to an increase in Bitcoin’s price.
- Bitcoin’s value is projected to hit $288,000 according to PlanB, the brains behind the popular price model Stock-to-Flow.
A new report from Glassnode has indicated that Bitcoin miners made just over $4 million in an hour, making it the largest windfall ever in the history of the network.
The blockchain analytics firm noted that the record high was reached on the 12th of February just before 5:00 pm UTC. The increase in earning power may be attributed to Bitcoin’s stellar surge in pricing.
Why Are Bitcoin’s Miner Revenue Surging?
Bitcoin miner revenue is currently on the rise because of the very nature of Bitcoin itself. On the blockchain, its value is designed to increase after each block reward halving which should give the miners the motivation to invest in increasing their hash rate and improve the security of the network.
Furthermore, since the volume of the transaction on the network is steadily on a high, the fees payable to miners are bound to increase.
The fees payable to miners are made up of the block reward which is all accruable to the miners and transaction fees. According to Clarkmoody, miner revenue only accounts for 13.5% of the total revenue.
On The Flipside
- Clem Chamber, Senior Contributor at Forbes noted that Bitcoin’s mining profits are on the way down because of the absence of stability in pricing.
- Experts have suggested that the mining pool is oversaturated with thousands of miners all jostling for a piece of the pie
- A bearish run of Bitcoin’s value could have pretty devastating effects on the revenue of Bitcoin miners, warns crypto-currencies experts
The Present Situation of Things And The Future
In May, Bitcoin went through its third block reward halving which essentially cuts the reward of all bitcoin mined in half. Presently the hash rate has an impressive run of form with it being at an all-time high with the fourth upward difficulty adjustment by 2.5% in a row.
Right now, Bitcoin is consolidating after reaching a new high of $50,000 and if it reaches $60,000 the market capitalization would most definitely hit $1 trillion, effectively making it one of the most valuable assets in the world.
Lex Moskovsky, a crypto trader and researcher noted that all this is achievable in the nearest future because of the rising institutional interest in BTC.
He opined that;
ANY INSTITUTION, COMPANY, AND PERSON WHO OWNS ANY OF THE ETFS BELOW OR THE SIMPLE $ TSLA ALSO HOLDS #BITCOIN. TESLA PULLED THE ULTIMATE TROJAN HORSE. WELCOME WARREN BUFFETT AND THE SWISS NATIONAL BANK. DO YOU OWN TSLA? YOU ARE $ BTC LONG.
PlanB, a Bitcoin researcher and the brain behind the viral Stock-to-flow price model has predicted that BTC is well on track to reach $288,000 giving credence to the assertions of Lex Moskovsky.