We have talked a lot about miners on the Bitcoin Network. After all, they’re one of the core contributors to Bitcoin’s success. The Bitcoin blockchain could not function without all the nodes and miners around the world. This is why the genius economics behind Bitcoin is so important.
Efficient miners are constantly rewarded. During times of bear market Bitcoin prices, the most efficient miners are able to keep their machines on because they’re still able to make a profit. During peak bull market Bitcoin prices they’re able to reap the rewards even while so many new miners enter the ecosystem and drive up competition.
Did you know that you can track the total mining revenue?
At current prices, Bitcoin miners are making over $30 million in revenue per day. However, it still has not reached levels of the previous bull run in 2017.
Using Glassnode you can breakdown revenue per each large miner on the Bitcoin Network.
Here is F2Pool who has seen a big jump in revenue from upward Bitcoin prices.
We can also breakdown revenue into two buckets; fees and block rewards.
Currently fess represent about 10% of the Bitcoin revenue. As the network gets more congested, that drives up fees, which in turn will drive up percent of total revenue in fees. You can see how fee percentage rises when Bitcoin price curve steepens. Around the year 2140 when all the Bitcoin have been mined, miner revenue will be 100% from fees.
Block rewards are newly minted Bitcoin that get created for each new block confirmed onto the blockchain. Miners are the first to get these newly minted Bitcoin. Each dotted line represents a Bitcoin halving which is when the block reward for each block gets cut in half showcasing Bitcoin’s disinflationary system.
This chart is the same one but instead of in USD the block rewards are charted in BTC value. You can see after every halving the block rewards in BTC terms start a lower sideways trend.
The systematic approach that Bitcoin has taken is economic beauty. Personally, I’d rather trust the code over bankers.
Let’s connect on Twitter. Looking forward to hearing your thoughts and feedback.
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Resources I Use
I use Glassnode for all the metrics I track on the Bitcoin network. Their platform is extremely user friendly and fun to use.
Binance is the main exchange to trade the crypto markets.
Trading Alpha has built their own indicators that provide buy and sell signals for crypto and equities trading.
I use Tradingview daily to analyze trading charts and find areas of support and resistance.
I learned how to trade through the Bulls on Wall Street program. I’m in this chat everyday giving out my trade ideas.
Nothing in this article is investment advice. I’m not a financial advisor. Do not make investment decisions based on what is in this article or any other article written by BTC News or Blockedia.