Briefly
- Bitcoin’s price rose above $ 48,000 today.
- Transaction fees are also higher than normal.
- This has resulted in more income potential for miners.
Bitcoin’s price – currently close to the $ 48,000 price – has an effect on people’s pocketbooks. This includes the wallets of those who exploit them.
According to data from blockchain analytics firm Glassnode, Bitcoin miners today earn more than $ 4 million over a one-hour period. This is the highest level ever at the Bitcoin blockchain, stand there.
Mining is the process by which transactions are verified and added blockchain. Miners operate specialized computers that contribute to the security of the network; the machine that first solves the cryptographic mystery is rewarded with freshly cut Bitcoin. The process begins in about ten minutes.
Miners earn two things when setting up a new block: a block reward, which is currently 6.25 BTC, plus fees paid by Bitcoin users to prioritize their transactions.
This results in about 37.5 Bitcoin per block reward – maybe more than seven blocks are processed instead of six. At the current BTC rate, it is $ 2.1 million.
However, much of the money miners earn comes from transaction fees, which yesterday reached a three-year high of $ 25.46 – with more than 2,500 transactions per block – adding another $ 400,000. Yet fees fluctuate wildly from day to day and from hour to hour – and tend to be highest during U.S. business hours.
While all the attention is given to the network as the price of Bitcoin rises to $ 50,000, there is more competition to get transactions in, and more incentive for users to pay a higher fee. It may be a bit for average users, but it’s clearly not that bad for miners.