Before Bitcoin finally gets to the final buyer, the digital asset would have gone through so many hands. One such people are the one that mines the asset by solving complex mathematical equations. For their activity, the miners, in turn, charge a small fee for every Bitcoin that is bought.
This is for them to add the transaction in a block and confirm it before it goes all the way to the final buyer. While miners have earned little over the years, their rewards have been over the moon over the past few months. As it stands, the mining game is now a very profitable business and would see more people venture into it as the days roll by.
Glassnode released the report
In a report that was shared by analysis platform, Glassnode, miners have earned a total of $52.3 million per day in the last few weeks. According to Glassnode, it is a welcome development as s they believe that it would continue to ensure that the Bitcoin network’s security is still intact. This means that if miners are still in the business, we will continue to see an abundance of Bitcoin in the market, and the rest thighs would fall in place. So many people have asked how miners can mine Bitcoin and make all this money.
All they do is try to solve cryptographic puzzles with complex machines, which, in turn, verified transactions as mentioned above. Even though people in the crypto sector are happy owing to the rising amount in the price of Bitcoin, others have criticized miners heavily. Since mining is a very energy-consuming business, miners have been the major consumers of energy worldwide. A recent Cambridge report pointed out that miners consume nothing less than 14.44 GW or, in the basic sense, 128.77 terawatt-hours of energy.
Bitcoin miners still earning more despite halving
If the energy figure is still a mystery, then in layman’s terms, the carbon footprints that Bitcoin miners generate are the same as those generated across London. While people might think that the mining of all digital assets might be energy-consuming, it is safe to say that Bitcoin is the only one that takes this much energy. In this present age, the estimate that miners have said to have received from users in the crypto sector to confirm their transactions on time is about 6.25 Bitcoin.
While it is good in terms of returns for the miners, it is safe to say that Bitcoin undergoes halving every four years, which would see the number of Bitcoin produced per block cut by half. The motive is to check inflation, and even at that, miners are still making it big in the industry. Glassnode pointed out in their report that despite the halving that happened last year, Bitcoin miners still saw massive profits.
This is because the asset’s price is very high, and there are a lot of people who want to make transactions in the network. With the congestion, the price for transactions has skyrocketed, meaning that people would pay more to jump the queue, which earns miners money.