Bitcoin’s bull market would be the main reason for this profit surge. The hashrate of the network has also increased, suggesting more miners connected.
The total daily income by miners for their activities in the Bitcoin network reached its maximum level for 2020 this week. The graphs from Glassnode and Blockchain.com show this week, also, the total mining profits returned to be the same as before the halving occurred.
$ 21.2 million was the total daily income generated by Bitcoin miners on November 18. The figure is the highest registered this year since similar metrics were only seen at the beginning of May, a few days after the network cut the reward received per block in half – on a scheduled basis.
By then the miners had come up with a strategy to earn how many bitcoins they could before halving, connecting the latest-model ASIC equipment and as many miners as possible. The price of Bitcoin was at $ 9,000 a unit at the time, and miners generated a daily income of up to $ 20 million with a block reward of 12.5 BTC.
Now that the network emits only 6.25 BTC per mined block, the miners are once again reaching the same gains from the beginning of the year thanks to the bull market that is being experienced at the moment. The cryptocurrency developed by Satoshi Nakamoto is at almost $ 18,000 per unit, a price never seen for two years ago.
More profitable mining = Happier miners
Bitcoin’s rising price favors network miners as many of them need to sell a portion of the coins they receive to cover operational expenses. Faced with a strengthened bitcoin, mining activities are more profitable because fewer cryptocurrencies are needed to cover the total costs.
It was exactly the low profitability that threatened the industry after the halving since as the miners’ reward decreased, their total income also decreased. After the downsizing, a significant number of miners had to disconnect the equipment that no longer generated the same profits as previously. Also, others decided to wait for the price of bitcoin to improve to compete in the market again.
A bitcoin above $ 17,000 seems to be a sufficient incentive for more and more miners to connect their equipment to the network. According to figures from BitInfoCharts, the network has reached a hash rate of 130.4 EH / s for the last 24 hours, as well as registering an increase of more than 10% in the last weeks.
The hashrate, or hash rate, would be measuring how much processing power the network is registering day by day. A figure that is closely related to the number of miners that connect to Bitcoin and how powerful these miners are.
Faced with an increase of 10%, it can be said that there are currently a greater number of computers operating on the network than months ago, which could be taking advantage of the high profitability that the network is offering at this time with bitcoin on the rise.
By: Jenson Nuñez.
