Recent data shows that throughout the process of mining Bitcoin (BTC), miners achieved a profit of roughly 37%.
On-chain analytics company Glassnode’s calculations indicate that since 2010, fees and block reward subsidies have brought in over $50 billion for miners.
Despite continuous debate regarding miner costs and their susceptibility to decreases in the price of bitcoin, new evidence shows that miners are likely to remain in the black over the long term.
The entire lifetime income of miners is projected by Glassnode to be $50.2 billion, which is about 40% more than their anticipated costs of $36.6 billion.
The data was produced by researchers utilizing two measures, Thermo cap, and transaction fees, which are “the cumulative sum of issuance multiplied by spot price in addition to all-time generated fee revenue” and difficulty manufacturing cost.
Glassnode detailed the specifics of the computations used to arrive at the 37% profit margin that is still in effect in a report published in late March.
The study states that in this approach, “Thermocap and Transaction Fees can be considered the realized revenue by miners, while the Difficulty Production Cost is considered the aggregate mining input expense.”
The outcomes dispel concerns that an excessively low BTC/USD price would lead to widespread capitulation in the mining sector, which is still growing.
The argument is supported by the fundamentals of the Bitcoin network, which will see new all-time highs in both difficulty and hash rate during 2023.
The hash rate at this time is 345 EH/s (exahashes per second), according to statistics from Blockchain.com. A recent increase to 393 EH/s brought it very near to its previous record high of just under 400 EH/s set in late March.
The difficulty metre, which gauges the amount of processing power needed to locate a block, is also reaching a peak of 48.7T.
When compared to the stock prices of publicly traded mining companies, the major IT stocks have underperformed this year. In the first quarter, the share prices of companies including Core Scientific, Digihost, Cypher, and Riot increased by a significant amount.