Bitcoin miners recorded higher profits last month as the price of the leading cryptocurrency bounced back from its summer lows
Bitcoin miners posted impressive revenues in August as the price of the leading cryptocurrency performed better during that period. According to data captured by The Block, Bitcoin miners recorded a revenue of $1.41 billion in August, surpassing the amount they generated the previous month.
In July, Bitcoin miners generated $971.83 million, with the price of the leading cryptocurrency struggling at the time. Bitcoin slightly dropped below the $30,000 mark in July, losing more than 50% of its value from its all-time high above $64,000 which it achieved in April.
The $1.41 billion generated as mining revenue in August represents a 45% increase from July. However, it is still below the highest monthly mining revenue, which currently stands at $1.75 billion (in March 2021).
According to the research, most of the revenue comes from the incentives the miners earn when they successfully mine a block. After the last halving event in 2020, miners are paid 6.25 BTC for every block they successfully create.
The transaction fees generated by Bitcoin miners have been declining over the past few months. The report showed that the transaction fee shared declined from 3.1% of total mining revenue in July to 1.35% in August. The decline could be due to more people holding their Bitcoin in wallets instead of trading them on cryptocurrency exchanges and other platforms.
The cryptocurrency market experienced a bearish correction during the summer, with prices dropping from their May all-time highs in June and July. Bitcoin, Ether, Cardano, XRP, Dogecoin and the other leading cryptocurrencies all experienced huge drops in prices during that period.
However, August was a better month for the general market. The total cryptocurrency market cap surpassed the $2 trillion mark again while Bitcoin touched $50,000 on several occasions. Ether is trading above $3,500 per coin while ADA rose to become the third-largest cryptocurrency by market cap after reaching a new all-time high a week ago.
Keep updated with our round the clock and in-depth cryptocurrency news.
Unsub anytime
No SPAM ever!
After signing up, you may also receive occasional special offers from us via email. We will never sell or distribute your data to any third parties. View our privacy policy here.
Please be aware that some of the links on this site will direct you to the websites of third parties, some of whom are marketing affiliates and/or business partners of this site and/or its owners, operators and affiliates. We may receive financial compensation from these third parties. Notwithstanding any such relationship, no responsibility is accepted for the conduct of any third party nor the content or functionality of their websites or applications. A hyperlink to or positive reference to or review of a broker or exchange should not be understood to be an endorsement of that broker or exchange’s products or services.
Risk Warning: Investing in digital currencies, stocks, shares and other securities, commodities, currencies and other derivative investment products (e.g. contracts for difference (“CFDs”) is speculative and carries a high level of risk. Each investment is unique and involves unique risks.
CFDs and other derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how an investment works and whether you can afford to take the high risk of losing your money.
Cryptocurrencies can fluctuate widely in prices and are, therefore, not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. Past performance does not guarantee future results. Any trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Your capital is at risk.
When trading in stocks your capital is at risk.
Past performance is not an indication of future results. Trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Prices may go down as well as up, prices can fluctuate widely, you may be exposed to currency exchange rate fluctuations and you may lose all of or more than the amount you invest. Investing is not suitable for everyone; ensure that you have fully understood the risks and legalities involved. If you are unsure, seek independent financial, legal, tax and/or accounting advice. This website does not provide investment, financial, legal, tax or accounting advice. Some links are affiliate links. For more information please read our full risk warning and disclaimer.