It seems that the value of BTC has risen in the last day.
Data from on-chain analytics firm Glassnode has revealed the all-time aggregate profit margin for Bitcoin miners; this is what it is.
Bitcoin Miners Have Obtained a Profit of 37% on their Total Investment
In a recent tweet, Glassnode released the latest data on the current position of miners regarding their revenue, costs, and profit. First, to calculate the revenue of these chain validators, the analytics firm has taken the sum of the “thermocap” and the transaction fees that this cohort has earned over their lifetime.
The thermocap is an indicator that measures the cumulative sum of the issuance multiplied by the spot price of Bitcoin. In simpler terms, this metric tells us the total value of block rewards miners have earned over the lifetime of the network.
To find the costs incurred by this group, Glassnode has used its “difficulty regression model”. This is a model to find the production cost of Bitcoin and is based on “mining difficulty”. Mining difficulty is a feature of the BTC Blockchain that controls how difficult it is for miners to mine on the network. Such a concept exists because the chain wants to keep its block throughput rate (the speed at which blocks are processed by miners) at a constant value.
Every time the computing power connected by the miners (the “hashrate”) changes, their ability to mine naturally changes with it. For example, miners can perform their tasks faster if they connect more machines to the network. However, as already mentioned, the network does not want miners to become faster (or slower) than the standard rate, so it adjusts the difficulty to neutralize this change.
In the case of the example above, the difficulty of the chain would increase in response, bringing miners back to the desired speed. The difficulty regression model assumes that difficulty encapsulates all the costs that miners have to pay, as it is directly related to the amount of computing power that these validators have connected to the network.
Glassnode has shared a graph, via Twitter, that how Bitcoin miners have earned lifetime revenue of around $50.2 billion, while their cumulative cost of production is around $36.6 billion. Revenues have been higher than costs for this group, which means that BTC miners have made some profit.
In numbers, this means that miners have earned total all-time earnings of $13.6 billion. Such figure represents a 37% return on the investments of these chain validators.
BTC Price
Bitcoin is trading around $28,700, up 4% in the past week. It is trading today, May 3, at US$28,649.92, according to the Live Coin Watch portal. This price positions it 102% compared to its value 24 hours ago and 101% compared to the same day last week. The token’s current domain (market capitalization) is US$554,741,447,015.
To sum up, Bitcoin has experienced four consecutive months of growth, an unprecedented event. Historically, this trend has never led to new lows, indicating that the Bitcoin bear market may be over. Still, only time will tell if this pattern holds and the Bitcoin bear market ends, as the legacy banking system faces significant challenges.
By Audy Castaneda
