Miners are doubly benefiting from the bullish rally in Bitcoin (BTC). Bitcoin above $ 30,000 allows them to largely profit from their activities despite the halving of the block reward in 2020. The explosion of transactions increases their fees and the incomes of miners.
Minors’ wallets swell
After an increase of 47% in November 2020, the income of miners of Bitcoin increased 33% in December 2020 from the previous month, to $ 692 million, according to data from Coin Metrics.
Luxor Technologies says that measured in terahash per second (TH / s), miners’ incomes have tripled in the past 3 months and stand at $ 0.284, their highest level since August 2019.
Network transaction fees contributed about 10% of miners’ income, with $ 68.3 million.
This amount registered a slight decrease compared to that of November 2020 when fees represented 10.5% of the total income of minors.
Mining machine manufacturers: the big winners
Coin Metrics indicated that the amount of transaction fees BTC was very volatile during the month of December 2020, varying between $ 4 and $ 12.
Since April 2020, just before the 3rd halving of Bitcoin, these costs constitute an increasingly important part of the income of minors. The increase in these fees is a guarantee to maintain the security of the network.
This increase in their income allows miners to obtain more machines, making it difficult to mine the network. BTC at particularly high levels after the adjustment made on January 9, 2021.
Most major mining machine manufacturers, such as Bitmain, are out of stock until August 2021.
Support from institutional investors for the current bull rally allows miners to benefit from a healthy financial position, allowing them to invest in more powerful mining equipment, increasing the overall hashrate of the network. BTC recently underwent a major correction following a liquidation of BTC by miners. Bitcoin dropped to the $ 30,000 level before rebounding. BTC is looking better after this major correction, it is back on the upward path towards $ 40,000.
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