The recent months have seen Bitcoin record tremendous growth, attaining new price highs in about three years. The surge in Bitcoin value has been reflected in the revenue amassed by miners.
Data acquired by Bankr indicates that between November 9 and December 8, 2020, Bitcoin miners have earned a total of $551.45 million. The figure represents an average of about $18.38 million in daily revenue.
The highest revenue was recorded on December 3 at $21.76 million. Elsewhere, miners recorded the least earnings on November 14 at $15.59 million. The miners earned money by successfully creating the next block of transactions, making both the built-in subsidy as the combined fees paid alongside the transactions included in the block.
Bitcoin price surge correlates with high mining revenues
The high mining fees correlate with a period when the price of Bitcoin has soared higher since 2017 when the asset hit the all-time high of $20,000. On December 1, Bitcoin hit its yearly high of about $19,700, the highest price mark since 2017. Consequently, the last 30 days’ earnings represent one of the highest revenue in nearly three years.
The Bitcoin price increase has been facilitated by several factors, including the increased interest from institutional investors. Notably, most institutions have upped their Bitcoin reserves in the last 30 days. Furthermore, leading companies like PayPal have announced support for Bitcoin, contributing to the price surge.
In the wake of the price surge, fees climbed as Bitcoin experienced its most severe congestion in about three years. Transactions awaiting confirmation filled up due to a drop in hash rate. The situation was caused by miners taking machines offline while looking for regions with affordable electricity. At some point, the mining revenue increased when several publicly traded mining companies have seen their shares rise.
It is worth mentioning that the Bitcoin mining revenue is encouraging, considering that the industry witnessed a decline in profitability over recent years. Small miners made losses as institutional miners built large arrays to mine. The continued growth of large-scale miners, mainly from China, has led to the wiping out of small-scale miners.
The milestone in mining revenue comes barely six months after Bitcoin halving took place. Fees as a percentage of total revenue are on the upward since May halving. The increase in fee revenue is essential to sustain the network’s security as the subsidy decreases every four years.
Miners focused on another Bitcoin all time
With the increase in price and revenue, miners are taking advantage to bring in more machines online after early November’s record drop. From the data, at the start of November, the mining revenue dropped. With such a challenging environment, an increase in resources is required to carry out more mining.
Analysts continue to project that bitcoin’s current rally is sustainable with the strong possibility of continued upward price movement. In this case, miners are looking at continued revenue growth through the end of 2020. Notably, the current mining revenue figures and hash-rate recovery mirrors well for the bull market’s continuation. Bitcoin proponents continue to predict another all-time high for the asset before the year ends.