Coin Metrics data shows that Bitcoin miners made over $354 million in revenue last week, according to Blockchain Analytics firm. This is the highest Bitcoin blockchain revenue ever recorded, surpassing the $340 million record set in December 2017.
Recent data shows that miners made $1.09 billion in January, reflecting the rise in crypto prices. This was $70 million more that the $1.02billion miners made in January 2018. It came on the heels a boom-bust bitcoin cycle, in which the crypto currency saw its price rise to $20,000 and then drop half in less than a month.
February’s figures could surpass December 2017’s record monthly revenue of $1.25 Billion for bitcoin miners.
“Despite declining block reward, mining revenues on a USD basis have trended upwards.” This is good news for Bitcoin’s long-term security and continued investments over these next few halving,” Ethan Vera (Co-founder of Luxor Technology) told CoinDesk.
Miners are not complaining
Mining bitcoin is now profitable again. However, the mining business has become more costly due to a bidding battle for equipment. Buyers of ASIC machines can resell them at premiums at least 70% due to the rising price of Bitcoin.
Bitcoin mining is very competitive as miners around the world verify transactions and secure the network for economic incentives. The global demand for Bitcoin mining is increasing in tandem with the Bitcoin price. This has not been slowing down. Crypto miners will be able to profit from the sudden upward movement in the bitcoin value which jumped almost 50% in February.
With increased interest from larger investors, traders continue to see a steady rise in bitcoin’s value and are now aiming for the psychological $50,000 level per bitcoin. The cryptocurrency’s current rally has taken its gains to over 1,000% from the March 2020 low.
According to industry website CoinMarketCap, this resulted in the total value of all bitcoin tokens in circulation surpassing $990 billion.
