Bitcoin miners earned $50B from BTC block rewards, fees since 2010
Bitcoin (BTC) miners have earned about 37% from mining Bitcoin since its inception, new data shows.
Calculations from analysis firms in the chain Glass node suggests that since 2010, fees and block reward subsidies have provided miners with over $50 billion.
Bitcoin mining revenue passes $50 billion
In the middle of one ongoing debate about miner costs and susceptibility to Bitcoin price drops, new figures suggest miners are stuck in the black for the long term.
According to Glassnode, miners’ total earnings over time are almost 40% higher than their estimated costs, coming in at $50.2 billion versus $36.6 billion, respectively.
Researchers generated the numbers using two metrics: thermocap and transaction fees — “the cumulative sum of issuance multiplied by spot price plus all-time generated fee income” — and difficulty production costs.
In a dedicated report at the end of March, they explained the nuances behind the calculations, while arriving at a 37% profit margin that remains in place today.
“In this model, the Thermocap and transaction fees can be considered the realized earnings of miners, while the production cost of difficulty is considered the overall cost of mining,” the report explains.
The results counter fears that too low a BTC/USD price could trigger mass capitulation in the mining industry, which nevertheless continues to grow rapidly.
Bitcoin network fundamentals support the argument, with difficulty and hash rate both reaching new records throughout 2023.
However, current estimates from BTC.com predict that this week’s difficulty adjustment will be the first negative one for Bitcoin since mid-February.
Bitcoin transaction fees are increasing
Meanwhile, an influx of newly created unused transaction outputs (UTXOs) thanks to ordinals is quickly making on-chain transactions less attractive this month.
Related: BTC Price May Need a $24.4K Drop as Bitcoin Speculators Stay in Profit
Glassnode shows that these created UTXOs are rising to the highest levels since 2015 in May, and the fees have increased accordingly.
Blockchain.com has a 1-day moving average transaction fee of $6.91 for May 2 – more than any time since July 2021.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
