The fluctuations and volatility in the price of Bitcoin this month have maximized the income of crypto miners.
The year 2023 is ending with very good news for Bitcoin miners, who have reached levels of profitability not seen since 2021.
During the month of December, the daily income recorded by Bitcoin miners has exceeded, on several occasions, $40 million dollars. This income has even reached $68,5 million dollars a day, a figure that represents a 50% increase compared to the daily income recorded by miners the previous month.
According to data from The Block Research, the current revenue that Bitcoin miners receive for confirming transactions on the blockchain network was surpassed only in April and November 2021, when the price of Bitcoin broke the $50.000 level and miners earned $69 million in revenue in a single day.
Source: The Block Research
Ordinals make Bitcoin mining more profitable
This month, Bitcoin mining has become more profitable thanks to the rise and demand for Ordinals. According to available data, Bitcoin miners' revenue from commission fees has grown by 48% since the beginning of December. This month has also seen a substantial increase in the cost of blockchain network transaction fees.
The Bitcoin Mempool shows that network fees are currently reaching 111 sat/vB, or about $6,57 dollars, for high priority transactions. While this may not be a huge figure for some, last week this same transaction was priced at around 482 sat/vB, or approximately $28 USD.
Source: Mempool
Bitcoin price up 150% this year
As can be seen, both the evolution of the price of Bitcoin, which has grown by more than 150% in 2023, and the frenzy caused by the Ordinals, have been determining factors in the increase in the profitability of Bitcoin miners.
Bitcoin is currently trading at over $42.000 per unit, showing a 13% increase in value over the past month and 150% since January. This increase in value has also increased block rewards and the fees received by cryptocurrency miners.
Source: CoinMarketCap
In addition to the revenue Bitcoin miners earn from the transactions they include in each block, miners also receive the network's block reward, which is currently 6,25 BTC, or about $265.000, and will be halved to 3,125 BTC after the next Bitcoin halving.
Continue reading: The 10 cryptocurrencies that grew the most in 2023
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