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Bitcoin Miners produced approximately $1 billion in January

Bitcoin Miners produced approximately $1 billion in January
Image by Aaron Olson from Pixabay

According to the data from The Block, the Bitcoin miners produced the second-largest revenue in January 2021. As per the reports, the revenue frequently came from the network’s block subsidies. This is bitcoin reward to miners for block production. At the time of this publication, the crypto’s network hash rate is approximately 150 million terahash per second (TH/s). This is as per the blockchain explorer,

According to the reports, Bitcoin miners’ revenue last month has exceeded the level witnessed in January 2018, which was at $1.02 billion. At the time, the miners generated more than $1.25 billion, which presumably correlates to the higher block reward and the surging price of the cryptocurrency then. Out of the $1 billion revenue last month, $977 million originated from the network’s block subsidies. The value of which rose distinctly related to December 2020 as Bitcoin’s price surged over $30,000 and hit as high as $42,000. According to data from The Block, they made around $500 million in January 2020.

Block Rewards contributed to January revenue of Bitcoin Miners

Moreover, the block rewards massively contributed to the January revenue of Bitcoin miners. They supposedly produced roughly $977 million of the revenue from the network’s block subsidies. The remaining arrived from transaction fees. Distinctly, miners are currently earning 6.25 bitcoin per block, after the third halving event last year. Therefore, Bitcoin miners revenue development probably supports the current spike in the cryptocurrency market price. The block rewards weren’t any more significant than the years before 2020.

Further, the community has witnessed a five million TH/s decline in the network hashrate following the January 17 all-time high (ATH) of 155.4 million TH/s, per Currently, the Bitcoin network hashrate remains approximately 150 million. It symbolizes a drop in the number of machines mining the cryptocurrency. There hasn’t been any significant current spike in the network’s mining difficulty, and so, miners are getting an increased amount of $0.25 for 1 TH/s.

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