Bitcoin depends on a technology named blockchain, a public ledger framework. This means that bitcoin tracks every transaction on every coin, making stealing a lot more complicated. Miners contract their computing resources in exchange for a limited sum of bitcoin.
Why mine Bitcoin?
Bitcoin mining is an expenditure that balances electricity and hardware costs against the anticipated returns. Mining pools, or communities of miners, tend to be concentrated in areas where energy is free. These miners often pursue various virtual coins, mining the blockchain they anticipate to provide the best return.
Bitcoin mining produced five billion U.S. dollars in revenue in 2019. This represents a 26 percent decrease, but their revenues increased almost 65 percent between 2017 and 2018. This suggests that the demand for bitcoin miners is overall increasing, but this growth remains volatile.
Snapshot from Coinbase data
In 2020, revenue for miners has crossed $700 million, according to The Block Research. Of this figure, transaction fees alone made $68.3 million
Not only in 2020, but generally since 2018, the December timeframe has been the most lucrative for miners. In December, bitcoin rates rose to $19,000 causing increase in demand for transactions.
Since bitcoin rates has gotten even better this January, miners can gain even more, provided the increase in value. As a note, BTC is selling at approximately $33,973.03 per coin at present.
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