Bitcoin extraction profits rose after one year

Bitcoin extraction profits rose after one year
Abstract

Bitcoin did not have a good deal last year, and miners did not earn much money. This trend has recently been slightly improved.

9 12 19

Bitcoin did not have a good deal last year, and miners did not earn much money. This trend has recently been slightly improved.

In recent months, there have been numerous news releases from closure of bitcoin mines or completion of mining contracts. Recent reports suggest that the revenue of extractors has grown again. Reports were published by the Blaccecin Diar Research Group.

The increase in revenue came after a few months since the worst bit of bitcoin mining history. According to Diar, mining revenues peaked last month at the lowest point in the past 19 months. During that time, only $ 195 million was extracted from Bitcoin, which was 10% less than last month. The same trend was observed for mining profits and the profit margin from 94 percent at the beginning of 2018 reached 32 percent at the beginning of 2019. However, the profitability of that process seems to be increasing, as the data reached 39% last month.

The margin of extraction profits is directly related to the price of the extracted digital currency, the extraction value and the cost of electricity. For this reason, miners continue to pay high costs to purchase dedicated equipment, known as ASIC, to stay in the extraction competition. The better they are, the more efficient they will be. By using them, you can achieve the desired results at the lowest energy consumption.


As a result of the above explanation, it could be argued that increased profits were the result of increased hascity of bitcoin extraction and forced miners to turn off old equipment and purchase new equipment. In addition, relative stability in the price of digital currency in the past months has also helped to increase profits. However, it remains unclear whether increased revenues will continue, or extra-curious and alarming events await activists in the extraction industry.

Source: thenextweb

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