The Bitcoin mining ecosystem is getting in on the action as operators see revenues hit new highs for the year.
As the hype builds around Bitcoin’s positive market moves to levels not seen since 2017, a number of key metrics are being hit by the preeminent cryptocurrency. The Bitcoin market cap has hit it’s all time high, while the price of BTC hovers around the $18,000 mark.
This impressive run has also benefited the Bitcoin mining ecosystem as data shows that the revenue from mining has hit all time highs for 2020 and have regained levels seen before the Bitcoin mining reward halving in May 2020.
As the chart below from Blockchain.com depicts, revenue has spiked from the beginning of November 2020 to the same levels seen before the halving.
Revenues around $21mln a day
Given the recent surge in the value of Bitcoin, mining revenue has now increased to around $21mln per day. This has more than made up for the halving of the Bitcoin reward for mining a block, which led to a shake out of less efficient miners.
The Bitcoin mining ecosystem also saw its biggest difficult drop by percentage in over 9 years at the beginning of November, following miners in China moving their operations into Sichuan province in the summer months to take advantage of cheaper electricity rates during the rainy season.
However after October miners are forced to relocate to areas like Xinjiang and Inner Mongolia as electricity rates pick up again in Sichuan. Industry experts believe this is part of the reason for the current mining difficulty drop.