Bitcoin mining is becoming a highly profitable business for the most experienced miners. Data released by Glassnode is shedding light on a booming industry. In its weekly report, Glassnode revealed that Bitcoin miners had their highest daily profit to date.
Mind-boggling earnings for miners!
A daily profit of $ 52,3 million was recorded this week. The report also talks about the fact that the previous Bitcoin halving event, which reduced block rewards from 12,5 BTC to 6,25 BTC and is expected to make mining even more challenging for miners, did not have a negative effect on miners' earnings as expected.
“This week, the incomes of Bitcoin miners hit a new all-time high of $ 52,3 million a day. This, despite the block subsidy halved in May 2020. Since miners' costs are generally denominated in fiat currency ”.
As Glassnode notes, "this is good for ensuring continued security for the Bitcoin protocol." This is because mining returns indicate that miners are actively working to decrypt each block, which primarily benefits network security as miners are paid better and means that dedication to mining becomes more and more popular. As well as that of trading on platforms such as Bitcoin Revolution.
This is just the beginning for Bitcoin miners who are prime candidates to make a lot more money. As the price of Bitcoin rises, miners' pockets will continue to swell. Currently, on-chain transactions are skyrocketing, which means the market is just as active as the bitcoin miners. The end product is once again a massive influx of money for miners.
"On-chain transaction fees paid in connection with trading activity are also an interesting metric for tracking market movement and priorities."
In the future, a solution to energy waste must be found
The future of Bitcoin mining looks promising, although the requirement to mine has received a lot of criticism. As Bitcoin mining requires a lot of energy, critics have predicted that while sustainability may be possible in the long run, countries that allow Bitcoin mining will make a loss.
According to a recent study by the University of Cambridge, Bitcoin mining consumes more energy per year than all of Argentina, a country with over 45 million inhabitants. Another study states that the level of carbon emitted by Bitcoin will soon be equal to that of the entire city of London. These emissions could also potentially raise the Earth's temperature by 2%.
This raises concerns about the asset's persistence in the highly competitive fintech sector. Even as regulation increases, countries with excess energy must be willing to allow mining or the grid remains stagnant. There are many other ways Blockchain can help the environment, but the high energy cost of mining Bitcoin is still a dilemma awaiting an effective solution.