Bitcoin miners have collectively earned more than $Two billion
Bitcoin mining has become a multi-billion dollar industry. Bitcoin miners have collectively earned overheen $Two billion ter revenue since the cryptocurrency wasgoed established ter 2008, according to an estimate from a fresh report published by the Cambridge Centre for Alternative Finance.
Bitcoin mining is how transactions on the bitcoin network get processed. Transactions ter bitcoin are bundled into &ldquo,blocks,&rdquo, and it&rsquo,s the job of miners to confirm those blocks are legitimate. This happens when a miner successfully solves a cryptographic puzzle linked to each block, gaining a payout called the &ldquo,block prize.&rdquo, This payout halves every four years, the current prize is 12.Five bitcoins vanaf block, or $15,350 at today&rsquo,s prices. The twist is this: miners voorwaarde rival with one another with greater computational power to solve the puzzle and win the payout.
Thesis incentives have led to a massive increase ter complexity and need for computational power. Te bitcoin&rsquo,s early days, people mined the cryptocurrency on their huis computers. Today, server farms of thousands of custom-designed machines around the world rival with one another to solve the puzzle very first.
Revenues generated by the bitcoin mining sector could be significantly higher, the report says. The estimate only accounts for revenues earned from block prizes and fees paid by bitcoin users for having their transactions processed. It doesn&rsquo,t include revenue from selling mining equipment, or providing &ldquo,cloud mining&rdquo, services, which let subscribers share ter block prizes for a toverfee, without having to operate their own equipment.
Importantly, the estimate doesn&rsquo,t account for capital gains from cashing out of bitcoin strategically, since the researchers assumed block prizes were instantly converted to US dollars. Those gains could be substantial, since bitcoin has bot on a historic bull run.
Transaction fees have historically bot a puny part of miners&rsquo, revenue, but they&rsquo,ve slok up this year spil the number of transactions gets closer to the bitcoin network&rsquo,s limit. Users are willing to pay higher fees to ensure their transactions are processed by miners. The question of how to raise the limit is at the heart of the &ldquo,civil war&rdquo, that has divided the bitcoin world. Spil bitcoin adoption grows, miners are prospering.