Bitcoin is one of, if not the most famous cryptocurrencies in the world, and this fact underlines its strength. Bitcoin miners made more than $4 million in 60 minutes on February 12th, the biggest hourly revenue in history.
People should keep in mind that, Bitcoin underwent the third block reward halving in its history, cutting the amount of new cryptocurrency mined in half. This event took place in May 2020.
Interestingly, after a block reward halving, the amount of BTC miners can mine using computing powers decreases by half. As a result, miner revenues decrease by 50% overnight, which could cause strain on mining operations in the short term.
In the meantime, the hash rate of this cryptocurrency’s network is also at new all-time highs. It has its fourth consecutive upward difficulty adjustment by roughly 2.5% expected in seven days.
Bitcoin mining and interesting moments
Importantly, a block reward halving occurs every four years. The purpose of this procedure is to decrease the rate the remaining supply of Bitcoin is introduced to the market. As Bitcoin nears its fixed supply at 21 million, thanks to halving, it is possible to reduce the rate at which BTC is mined.
It is worth noting that, halving can put immense pressure on miners that depend on the BTC they mine to cover operational costs in the short term. In theory, when halving occurs, there is a high chance that the price of the world’s most famous cryptocurrency will increase because of the lower supply of new coins entering the market. Consequently, a higher BTC price can make up for the lower number of BTC miners receive for mining a block.
Interestingly, this week Bitcoin miners generated the biggest hourly revenue in history. This is despite mining half the BTC in comparison to 2020. This fact shows that the world’s largest cryptocurrency is working as designed. It means that its value is going up following the block reward halving. Miners are willing to increase their hash rate and invest in the security of the network.
There is another reason as well. Interestingly, another reason behind the rising mining revenue is the increasing number of transactions on the network, and the accompanying fees paid to miners as a result. It is worth noting that, miners generate income thanks to transaction fees plus block rewards collected by miners.