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Bitcoin Revenues in March

Bitcoin mining revenues hit a record of $1.5 billion last March.

With Bitcoin’s price setting an all-time high in March, miners have been getting all the benefits.

Bitcoin miners acquired over $1.5 billion in Bitcoin block rewards and fees from last month, according to a report from Arcane Research, a blockchain analytics company.

Although the mining revenue has decreased by the end of the month as the trading volume settled down, the monthly tally still establishes a record.

The final figure is basically in line with projections from mid-March, when Glassnode reported that miners have been taking home $52.3 million each day. Revenue reached a record of $64.7 million last March 14, the day after Bitcoin’s price peaked its new ATH of $64,683.

Mining is how the transactions get added to the Bitcoin blockchain. Miners, typically in coordination with bigger mining firms, have used a specialized hardware to run the Bitcoin software. The process gives the network security as miners lend their computing power to solve cryptographic puzzles. The first miner to do it will have to confirm a new batch, or block, of transactions and will receive newly minted Bitcoin, also any transaction fees that people have paid to help push their transactions on the network.

Recently, miners have received a block reward of 6.25 BTC, with a new block mined every 10 minutes or so. What could be startling is that the block reward seemed to be higher. From July 9, 2016 until May 11, 2020, miners have earned 12.5 BTC for each block minted. Four years before that, it was only 25 BTC, and for nearly the first four years of Bitcoin’s existence, block rewards were only 50 BTC.

Which is to say that Bitcoin mining revenue will go up notwithstanding the block rewards going down; the shrinking supply has driven the price upwards. Price is indeed the primary reason for the revenue increase. Transaction fees play a smaller role; average fees declined in March as the number of transactions slowly decreased.

Revenue isn’t the same thing as profit. However, mining profitability has consistently been rising since October 2020. Last March, it hit its highest level since July 2019.

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