Bitcoin mining has become a very large industry within itself. And reports suggest that in the month of April, Bitcoin miners generated a revenue of $1.7 billion. This is a huge amount and gives us a rough idea about the kind of scale BTC has reached. This number is still a small dip from the $1.75 billion revenue generated in March. This can be due to some factors like the dip in the BTC price at the end of the month. And also, the power failure resulted in a huge dip in the hash rate of BTC.
The revenue of Bitcoin miners
Of the entire $1.7 billion in revenue in April, about 15% came from the transaction fees of the network. This amounted to nearly $247 million. This shows that people are actually using BTC for transactions as this ratio of the fee to revenue is the highest since 2018. As this industry gets even more popular, we could easily see another rapid increase in the mining fees and transaction revenue of Bitcoin.
This number is also a very good thing for the future of the currency. It is because the mining coin’s has rate or mining rate is directly proportional to its price. When there was a blackout in China, and the hash rate of BTC dropped, so did the price of the coin. And once the hash rates started to recover, so did the rates. Therefore, as the revenue of the industry continues to increase, it will attract more miners. This will result in an increase in the hash rate and push the price of BTC to new highs.
Is this actually good?
Well, the answer depends on the perspective of how. If you ask if BTC mining is good for the future of finance? then I would say yes. But if you ask me is it good for the environment? I would probably say no. It doesn’t matter how arguments are made that BTC mining can be beneficial for the environment as it promotes the use of renewable energy resources. But truth be told, it is not entirely true. In fact, the same energy that is used for mining can be out to many better use cases. And therefore, it becomes really important to understand the impact of BTC mining.
What are your thoughts on the huge revenue Bitcoin miners generated in the month of April? And do you think it is going to increase from here on? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.