Bitcoin price is close to $ 50,000 per coin and activity in the chain is on the rise. The recent bull trend and growing interest in cryptocurrency have allowed miners to generate over $ 50 million in revenue in a single day.
Rising Bitcoin prices in combination with rising transaction fees have made mining BTC a particularly lucrative undertaking.
Bitcoin Miner’s daily turnover exceeds $ 50 million
Bitcoin’s 2021 gains make the stock market, gold, and everything else barely a slip-up in comparison and are the best-performing asset on the planet in terms of overall ROI.
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Investors who bought Bitcoin at any point before the start of the year make almost double their profits, but with prices this high, even miners are killing compared to the cost of production.
Fees are helping to drive miner revenue sky-high. | Source: Arcane Research
Data from Arcane Research shows that the BTC miners combined now have a daily turnover of over $ 50 million, which is the result of new coins unlocked and the percentage of transaction fees.
The report shows that while transactions have been declining week in and week out, the transaction value has increased, increasing the proportion of fees generated at the same time. Fees now account for roughly 15% of total sales, or $ 7.5 million in BTC.
Survival of the strongest, the BTC goes to the winner
BTC miners are clearly enjoying a profitable environment right now and are in part a crucial factor in the upward trend. The theory is that those miners who are able to withstand bear market sell-offs will end up being better financially prepared for the next bull market, holding stronger, and allowing a much higher premium before they have to secure profits to cover operating costs.
Some miners are in a better position than others, either through access to cheaper energy bills or better financial support. Whatever the case, those who can withstand the bear market rightly deserve the revenue when the market turns.
The cost of producing each BTC is under $20,000. | Source: BTCUSD on TradingView.com
Just like the investors themselves, weaker miners sold the crash to $ 3,200 and were sadly wiped out during the Black Thursday sell-off. Those who survived or had their BTC reserves now have a lot more to sell than 15 times the price it was then.
Related reading | Forget about 2021, Bitcoin price can be this high until 2026
After Black Thursday, the halving made the cost of making each coin even higher, making survival all the more difficult. The halving reduction offer is only one reason why the cryptocurrency will rise after the event has expired. The other piece is this unique cycle of cleaning weak miners so that stronger hands can avoid selling during the uptrend.
Survivors are now fine with earnings of $ 50 million a day.
Featured image from deposit photos, charts from TradingView.com