Bitcoin Miner Profitability Sees Twofold Increase
Author: Nicole GomezThe Bitcoin Mempool, which has been seeing a multi-year high in its number of confirmed transactions, had over 400,000 pending transactions in 2021. This is likely the main reason miner profitability is up, as the sales of rewards for successfully mined blocks keeps increasing as does the congestion on the Bitcoin blockchain. The difficulty for miners, which gauges how easy or hard it is for miners to add a block of transactions to the longest chain and receive the respective reward, dropped from its record highs by 1.45% on the 4 of May after five positive adjustments from February late last year.
The increase in miner profitability easily follows the post-dip bull run that bitcoin started in late March, when it retraced its steps from a four-month low of $20,000 to currently over $50,000. Overall, BTC has seen its worth go up by 45% since then. This combination of high transaction fees, growing difficulty levels and high spot price of BTC has made it increasingly profitable for miners to continue to keep the network afloat.