On-chain metrics show miners have generated a lot of revenue from the ongoing Bitcoin rally- from $20,000 to above $40,000. The diversity in the mining infrastructure is a good thing for the network’s security.
Record Increase in the Past Two Years
Analytics firm Glassnode revealed over Twitter that “cumulative” miner revenue has crossed above $20 billion. Rafael Schultze-Kraft, CTO of Glassnode, commented that miners’ revenue in the past two years is more than the value generated in the first ten years of Bitcoin.
With the price increase, the profit from mining has also increased, which is beneficial to maintain security. So, at the time, miners are happy because the top digital asset is awarding them with high profit. People who are connected with mining are playing an important part in protecting the network from security attacks.
Mining is a business now as major tech companies have recently entered the industry. Crypto investment firm Galaxy Digital has unveiled its plan today of diving into the sector.
The price rally has caused crypto exchanges to be flooded with users who are ready to buy Bitcoin. The bustle of crypto-inspired people and miners has also pushed mining difficulty high. On January 9, the difficulty broke above 20 trillion for the first time.
Due to the high demand for mining machines, big manufacturers in the industry are receiving unlimited orders. Due to high demand, the prices of mining machines have surged.
Cryptocurrency mining is banned in various countries where electricity shortages present. People tend to establish their machines in areas where electrical power is cheaper. Recently, the Seattle Times reported that illegal mining might get a boom in the public utility districts of Washington State. The risk in the region is high because electricity is cheap due to hydropower stations. And the local authorities have doubled the electricity costs for commercial mining. So, there is a high possibility that some suspicious actors may start illegal mining there as people along the river in Seattle pay only “2.33 cents kilowatt-hour.”
Iran is a country where mining cryptocurrency is recognized on a national level. But the government has made it necessary for operators to register with the government. In order to stop illegal actors, the government has started a crackdown against illegal mining farms. According to reports, Iran has closed 1,620 farms that were operating without registration.