The continued reduction in mining difficulty and the increase in the price of Bitcoin have contributed to raising miners’ income. The growing number of people using Bitcoin, the entrance of new players into the mining business, and new all-time prices will determine the amount.
In the last month, Bitcoin miners have earned almost USD 834 million, according to data from Blockchain.com and Crypto Parrot. In that period, they have received an average of about USD 26 million per day.
The second of these firms reported an income growth of 180% for farm owners. They explained that such a significant increase has occurred despite the high volatility in the price of the pioneering cryptocurrency.
Two factors have contributed to raising the amount of money that those dedicated to mining Bitcoin have received. There is a continued reduction in mining difficulty, and the price of the cryptocurrency has recently risen. The first case is the most relevant since the increase in the price of Bitcoin has occurred recently.
Importance of the Increase in the Income of Bitcoin Miners
One of the most prominent factors of this particular increase in income that Bitcoin miners have received is the context. Both the staunchest defenders of cryptocurrencies and the first cryptocurrency have been under siege.
It is hard to imagine other assets have suffered the same level of attacks as the pioneering cryptocurrency. The main criticism is about the alleged harmful impact of mining on the environment. Despite some studies that have proved the increasing use of renewable energy by Bitcoin miners, the narrative continues. Influential critics still use social medial to say negative things about the pioneering cryptocurrency.
Concerning the restrictions from the Chinese authorities on mining, they have become one of the strongest setbacks. Additionally, pressure from regulators in many countries on exchanges such as Binance is affecting the crypto community.
Faced with negative news, the price of Bitcoin has managed to remain stoically above USD 30,000. Bitcoin miners decided to avoid capitulating at all costs, which bore fruit when they received their income.
It is Not the Largest Income in the History of Bitcoin Miners
This increase of 180% in the income of miners is not something new in their history. During the first quarter of the year, miners received USD 1.7 billion in a matter of a month. That amount is about twice as much as what they received between June 27th and July 27th.
During the 2017 Bitcoin bullish run, the income of miners was USD 1.3 billion. That suggests that these large amounts will become more common over time.
The growth in the number of people using Bitcoin will contribute to the increase in miners’ income. Meanwhile, the entrance of new players into the mining business and new all-time prices will be determining factors.
If those three factors occurred together, there would be a perfect storm in which all Bitcoin holders would win. They would include miners, savers, and traders, among other members of the community.
By Alexander Salazar