Anytime Bitcoin undergoes any bullish momentum and makes an upward surge in price, aside from investors, miners get a large chunk of the profit. This is no surprise because miners are directly involved in any process that has to do with Bitcoin sales because they are the ones that confirm the transactions.
Despite 2020 being a very trying year for every sector of the economy, especially the financial sector that houses the crypto industry, miners had every reason to end December on a positive note. According to the latest analysts form analytics firm, CoinDesk, Bitcoin miners were able to accrue profits of about $692 million to end the year.
Bitcoin revenue jump of December was better than that of November
Despite this figure looking like a figure that the miners would get every month for their work on the Bitcoin network, it signifies a massive jump of 33% compared to what they got in November 2020. Riding on the back of the previous highs of 48% recorded in November, Bitcoin, which saw its price rally into uncharted territory, was able to gift traders a cumulative price jump of about 300% to end a turbulent year at around $29,000. According to estimated revenues, miners were keenly excited to hold on to their Bitcoin holdings as the asset began to rise, selling it as they mined.
Even though the move favored the Bitcoin market, it signifies that the buying pressure on the part of traders and investors was present since then. A look at the measurement showed that traders saw their revenue triple the whole amount that they got in the past three months before December.
The breakdown also showed that network fees also played an integral part in the revenue earned as the miners saw $68.3 million enter their purses. Despite the huge figure represented by the network fees, it was not enough to topple the network fees earned by miners in November with a 0.5% decrease recorded.
More miners are entering the Bitcoin network
Coin Metrics noted that transaction fees made a skyrocket in their review of the transaction fees due to the surge in price to rest around $4 to $12. Also, transaction fees played an integral part in the total revenue gotten this month as it showed an uptrend, which was last seen around April towards the halving event that occurred in May. Analysts have noted that an uptick in transaction fees has always ensured that the Bitcoin security is good, with the subsidy always reducing every four years.
Also, miners are making use of the opportunity to increase their mining machines, which in turn makes the mining difficulty on the Bitcoin network witnessing an increase. To show this, major mining machines provider, Bitmain has said that the sale of its miners have been on the rise as miners are looking for ways to capitalize on the rapid rise of Bitcoin and amass more profits. With experts and analysts predicting that Bitcoin could hit a three-figure price tag, new miners are beginning to enter the space every day.