Historic Revenue Achieved in March
Bitcoin miners experienced a monumental surge in earnings, surpassing $2 billion in March and setting a new all-time high. This remarkable achievement was highlighted by The Block analytics, noting that the previous peak of miners' total income was $1.7 billion in May 2021. The earnings of miners are derived from the rewards for mining blocks and the transaction fees on the Bitcoin network. Notably, March saw a record monthly figure for transaction fees alone, contributing $85.8 million to the total revenue.
Leading Contributors to the Milestone
The mining pool Foundry USA emerged as the top contributor, mining 1,312 blocks and accounting for 29.74% of the total blocks in the network during March. Following closely were Antpool with 989 blocks, Viabtc, F2pool, and Binance Pool, marking significant contributions to the mining ecosystem.
Implications of the Upcoming Halving
The imminent reduction in the block reward from 6.25 BTC to 3.125 BTC in April has already impacted the daily volume of commissions, which returned to around $2 million. The early days of April did not witness any significant change in this trend. Galaxy Digital experts predict that approximately 15%-20% of the total computing power of the Bitcoin network will become unprofitable post-halving. This prediction suggests that miners may shut down less efficient installations, maintaining only the most effective equipment.
Potential Shifts in the Mining Landscape
There is an anticipation of a post-halving migration of outdated Bitcoin mining equipment from the United States to regions with more favorable energy tariffs, such as Africa. This shift could be driven by the desire to maintain profitability under reduced rewards. Additionally, there is a market expectation that the completion of the halving event will lower the prices of mining equipment, making it a strategic time for purchases. For instance, used S19 mining rigs, which cost about $7,000 in March 2022, have seen a drastic reduction in value to $427, illustrating the significant impact of market dynamics and the halving event on mining investments.
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