Bitcoin Miners See 400% Increase in Fee Revenue in 2023
Date: 2023-12-26 Author: Dima Zakharov Categories: IN WORLD
Bitcoin miners have had a phenomenal year in 2023, as the revenue generated from transaction fees has skyrocketed. On average, miners of the leading cryptocurrency are now earning over $2 million per day in transaction fees, marking a remarkable 400% increase compared to the previous year. This substantial growth has caught the attention of industry experts and enthusiasts alike, including Jameson Lopp, co-founder and CTO of Casa.
Lopp shared on Twitter that bitcoin miners collectively collected nearly $2,000,000 daily from transaction fees in 2023, emphasizing the significant uptrend. The total revenue generated by Bitcoin miners in 2023 reached approximately $10 billion, with a staggering $57 billion accumulated over the last 15 years.
It's important to note that these figures assume miners instantly convert their assets into fiat currency. However, Lopp points out that many miners often employ a "hodling" strategy, holding onto their Bitcoin rather than selling it immediately.
According to data from The Block Research, on December 23, the mining yield per terahash per second (TH/s) reached a two-year high, hitting $0.12. This signifies the growing profitability of Bitcoin mining operations.
Furthermore, on the same day, the mining difficulty for Bitcoin reached an all-time high of 72.01 T, marking a 7% increase. The average hashrate since the last difficulty adjustment stood at 512.55 EH/s.
CoinMetric's report highlights the remarkable growth in mining performance, with the hashrate increasing from 250 EH/s at the beginning of the year to 480 EH/s at the current moment.
To put it into context, the December surge in Ordinals led to a sharp increase in Bitcoin transaction fees and mining revenues, underlining the dynamic nature of the cryptocurrency market.
