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Are Bitcoin miners profiting from this bull run?

Photo of: Joseph Stone
by Joseph Stone

The cumulative revenues of the Bitcoin mining industry now reach 20 billion dollars. This figure has doubled in the space of two years. It represents more than the mining revenues of Bitcoin’s first 10 years.
Bitcoin’s price inflation is not only a source of happiness for savvy traders. The mining industry is also taking full advantage of the value of cryptocurrencies and blockchain activity. This also explains the record equipment orders from some players.

According to Glassnode, the cumulative revenue from Bitcoin mining now reaches $20 billion. And it’s been skyrocketing for the past two years. Over the period, this revenue has simply doubled.

Better still, in the space of only two years, the mining industry earned more revenue than in Bitcoin’s first 10 years. Not surprisingly, however. Adoption was not what it is today.

More importantly, the value of Bitcoin was not at the historical levels of recent weeks. And these have led to very strong speculation and thus to an increase in the number of transactions. For miners, this means additional income.

In less than five months, the value of the asset quadrupled. The price of bitcoin began to rise in October. At that time, it was only about $10,000. By January, it was over $40,000. The counterpart is excessive volatility.

For miners, however, there are serious advantages. To the point of encouraging new players to enter the mining market. This is particularly the case for Galaxy Digital.

The investment specialist announced on January 15 the launch of Galaxy Digital Mining. However, the aim is not to develop its own server farms to mine Bitcoin. The company presents itself “as a one-stop financial services platform for miners. ยป

However, because of its Proof-of-Work model, Bitcoin mining also involves energy consumption. According to Digicomist, this industry consumes as much electricity as a country like Chile.

Perhaps the key is to increase the use of renewable energy in this crypto-mining sector. At the end of 2020, an operator of hydraulic power plants launched Bit+. The goal is to provide miners with energy with a low carbon footprint.