Bitcoin Reaches $3B Annualized Revenue

According to data from a recent ETC Group research, bitcoin miners had a very robust spring.

According to the report’s press release, the quarterly research, released for the first time by ETC Group, assesses the performance of Bitcoin, Ethereum, and Litecoin. It also gives commentary and analysis on the market and technical events. Computing the annualized revenue run rates occurs by taking the total transaction fees. They commonly became known as net income, paid to crypto miners in any given period.

According to the analysis, the calculated ARR for fees paid to Bitcoin miners hit $2.986 billion in April. According to an ETC Group tweet, the amount surpassed the earnings of Shopify ($2.922B) and Square ($2.982B).

Ethereum system anticipated

Hut 8 and Hive, two publicly traded bitcoin mining companies, are expanding their capacity to mine the second-largest cryptocurrency by market capitalization. Meanwhile, miner manufacturers such as Bitmain and Innosilicon plan to deliver new ethereum mining rigs later this year.

This investment may appear odd given that the Ethereum system expects to transition from proof-of-work (POW) to proof-of-stake (POS) mining in five months. Moreover, POS mining does not require such powerful computers. According to industry experts, growing demand could relate to expectations that the migration will delay.

Freezing mining

The difficulty bomb was established in Ethereum Improvement Proposal (EIP) 3554. It adds artificial miners to increase mining difficulty, making mining operations less viable. This period became known as the “Ice Age.”

Ethereum developers first offered this EIP in 2015, but it postpones until December 2021.

According to Ethan Vera, chief operating officer of Seattle-based mining business Luxor, switching the network to proof-of-stake may become more challenging if ether’s price climbs.

We’ve seen ether reach $3,000, decentralized finance (DeFi) is being built on top of the network, and [non-fungible tokens] have taken off, Vera remarked.

Aside from technological problems and security concerns for Ethereum assets, significant pushback from the Ethereum mining community could be another factor slowing the network’s transition to POS.

Institutional players

Ethereum mining employs a more significant number of individuals and fewer large-scale miners than bitcoin mining.

According to Vera, mining ETH using graphic processing units (GPU) at home is conceivable. This is mainly due to the relatively low energy consumption compared to bitcoin miners. As well as the modest amounts of heat and noise produced by ethereum mining rigs. On the other hand, Crypto mining heavyweights are making moves to get into the business. They want to reap profits more significant than those made by bitcoin mining.