Crypto News

Bitcoin Miners Profit $50B Since 2010: Glassnode Report

Published by
Nonhlanhla P Dube
  • Bitcoin miners have made a profit of over $50 billion since 2010 from block rewards and fees, according to Glassnode analytics firm.
  • The income generated by miners is almost 40% higher than their estimated expenses, indicating that miners are still profitable in the long term.
  • Despite concerns that a drop in BTC price could lead to mass capitulation in the mining industry, Bitcoin network fundamentals suggest that difficulty and hash rate are hitting new all-time highs, with miners remaining in a strong position.

Bitcoin mining has been a hot topic of debate over the years, with some people questioning its profitability and others praising it as a lucrative venture. New data has now shed light on just how much Bitcoin miners have earned since the cryptocurrency’s inception in 2009.

According to a report from Glassnode, an on-chain analytics firm, Bitcoin miners have earned over $50 billion in profits from mining activities since 2010. These profits have come from fees and block reward subsidies, and the overall income for miners is almost 40% higher than their estimated costs, indicating that miners are firmly in the black in the long term.

The report generated these numbers using two metrics: thermocap and transaction fees. Thermocap is the cumulative sum of issuance multiplied by spot price in addition to all-time generated fee revenue, while transaction fees are the fees paid by users to miners for processing their transactions.

The findings counter fears that too low a BTC/USD price could spark mass capitulation across the mining industry, which continues to grow. Bitcoin network fundamentals support the argument, with difficulty and hash rate both hitting new all-time highs throughout 2023. However, current estimates from BTC.com predict that this week’s difficulty adjustment will be the first negative one for Bitcoin since mid-February, 2023.

The report from Glassnode also revealed that an influx of newly-created unspent transaction outputs (UTXOs) thanks to ordinals is rapidly making on-chain transactions less appealing this month. Glassnode shows these created UTXOs spiking to their highest levels since 2015 in May, with fees rising accordingly. Blockchain.com has the 1-day moving average transaction fee rate at $6.91 for May 2 — more than at any time since July 2021.

Overall, the report provides valuable insights into the profitability of Bitcoin mining, as well as the impact of transaction fees on the network. While Bitcoin mining can be a lucrative business, it’s important to consider the costs and risks involved, especially given the volatility of the cryptocurrency market.

Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at nonhlanhla@rateweb.co.za

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Published by
Nonhlanhla P Dube
Tags: Bitcoin

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