Bitcoin mining businesses have generated their largest monthly income ever, with over $ 2 billion earned in transaction fees and block rewards.
The previous record was $1.74bn, set in May 2021.
Just In: #Bitcoin Mining companies have achieved a monthly revenue record of $2 billion, the highest in history.
Halving coming in hot in 2 weeks 🙌
— Bitcoin Magazine (@BitcoinMagazine) April 2, 2024
Around $85 million of the $2 billion in revenue earned by the Bitcoin block subsidy came from transaction charges, and $1.93 from the block subsidies. Miners are compensated for validating transaction and minting bitcoins.
The current block subsidy for every block that is mined amounts to 6.25 Bitcoins. After the April halving, it will fall to 3,125 bitcoins. It will reduce miner revenues from bitcoin creation by half unless prices rise significantly.
The increased network activity as well as the increasing price of bitcoin contributed to the record revenues for miners in March. It was important for miners, because of the impending halving, to maximize their earnings.
Foundry is the leading US mining pool. It accounted for 29.4% all blocks that were mined during March. AntPool from China came second, with 22,4%. These two pools accounted for over half of the Bitcoin monthly supply.
Exchange-traded fund investors who bought bitcoins in the open market last month accumulated more profits than miners. ETFs acquired roughly 66,000 bitcoins during March. Miners, on the other hand, produced about 25,500.
The increasing scarcity and the widening imbalance between supply and demand could lead to greater competition in order to obtain Bitcoin. This increase in difficulty may push out miners who are less productive, leading to industry consolidation.
The halving of rewards will cut the reward by half within a few weeks. Miners are now facing a harsher environment, if Bitcoin doesn’t compensate for this drop. If history is repeated, then a bitcoin bull market could be in the near future, which would soften the impact of the reduced block subsidy.
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Source: bitcoinmagazine.com