Bitcoin mining hits $2bn in March 2024

Bitcoin mining businesses generated $2bn monthly revenue from block rewards and transaction fees in March.

This feat surpasses the previous record of $1.74bn set back in May 2021.

This is according to data by Bitcoin Magazine assessed by The PUNCH on Tuesday.

Bitcoin Magazine is the world’s first and foundational digital currency publication, covering innovative ideas, breaking news, and global impact at the cutting-edge intersection of finance, technology, and Bitcoin.

According to the magazine, transaction approximately $85m of the total revenue came from transaction fees.
The remaining $1.93bn was earned through the block subsidy. Miners receive compensation for both validating transactions and minting new bitcoins.

The block subsidy, currently set at 6.25 bitcoins per block mined, will be halved to 3.125 bitcoins after the upcoming halving event in April.

This reduction poses a challenge for miners unless there’s a significant price surge to offset the impact.

Several factors contributed to this revenue surge: Increased network activity played a role; rising bitcoin prices further boosted miners’ earnings.

Notable mining pools also played their part: Foundry, the leading US mining pool, secured 29.4 per cent of all blocks mined in March.

AntPool, a Chinese pool, followed closely with 22.4 per cent of blocks.

While miners celebrated their profits, exchange-traded funds were busy accumulating more bitcoins.

In March, ETFs purchased approximately 66,000 bitcoins, surpassing the 25,500 produced by miners.

The widening supply-demand gap and the impending halving could intensify competition for securing Bitcoin. Less efficient miners may be squeezed out, leading to industry consolidation, the magazine noted.

As the halving event approaches, miners face a tough environment. Their rewards will be cut in half, emphasizing the need for Bitcoin’s price to compensate for the reduced issuance.

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