Cointelegraph reported on Tuesday that Bitcoin had in total suffered just 10 percent from the coronavirus outbreak, which obliterated stocks. Photo: Reuters
Cointelegraph reported on Tuesday that Bitcoin had in total suffered just 10 percent from the coronavirus outbreak, which obliterated stocks. Photo: Reuters

Global Bitcoin mining revenue increases 10 times in three years

By Sizwe Dlamini Time of article published Mar 31, 2020

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CAPE TOWN – The impressive growth of cryptocurrencies over the last year was followed by a surge in coin mining, as a way of investing in virtual currencies without having to put down money for it.

According to data gathered by Finanso.se, the global Bitcoin mining revenue increased 10 times in the last three years, reaching a $5 billion (R89 billion) value in 2019.

As the most significant name in cryptocurrency in terms of both market cap and price index, the Bitcoin generated the highest revenue in coin mining, Finanso.se said in a report released on Tuesday. Bitcoin Mining Income Jumped 65 percent Between 2017 and 2018

“The bitcoin miners support, legitimate, and monitor the Bitcoin network and its blockchain. Their task is challenging and only sporadically rewarding. Nevertheless, it has become an appealing activity for many investors interested in cryptocurrency because miners are rewarded with bitcoins for completing blocks of verified transactions added to the blockchain.

“In 2016, the global mining revenue reached $260 million value, revealed the Statista data. Over the next twelve months, this figure increased more than 2.5 times and reached $700 million. The most significant rise in the global bitcoin mining profits happened between 2016 and 2017 when the revenue jumped from $550 million to nearly $3.2bn. In 2018, bitcoin miners gained a record profit of $5.26bn globally.

“Although the income dropped to over $5bn till the end of 2019, this amount is still 19 times larger than the 2013 figures. Nearly $4.9bn of the entire 2019 revenue was in the form of block rewards, while the rest was delivered via transaction fees,” reads the Finanso.se report.

Cointelegraph reported on Tuesday that Bitcoin had in total suffered just 10 percent from the coronavirus outbreak which obliterated stocks and caused the United States to print $6 trillion.

That was according to the latest quarterly price data from monitoring resource Skew.com on March 31, which showed that for the first quarter of 2020, bitcoin’s dollar value was only down by about 10.7 percent. 

Bitcoin has advanced 75 percent in the two weeks since hitting its quarterly low — in a volatile period, that recovery at one point reached 90 percent as markets peaked at more than $7 000 on some exchanges.

“As such, Bitcoin now looks increasingly resilient as an investment option versus traditional markets, which are still trailing much more as a result of coronavirus. 

“That was despite intervention by central banks on a scale never before seen in history — as Cointelegraph noted, the U.S. money printing exercise alone recreated the country’s entire GDP of 1990 and added it to the dollar supply,” said Cointelegraph.

Recent years have also witnessed a massive rise in the number of Bitcoin daily transactions. In 2016, there were over 201 500 daily Bitcoin transactions. At the end of 2017, this figure jumped by nearly 60 percent and hit almost 320 000.

By the middle of 2018, the number of daily deals plunged to the lowest point of 193 800. However, over the next six months, it surged to a record of over 381 600 transactions. At the end of 2019, there were nearly 293 500 Bitcoin transactions recorded daily worldwide.

BUSINESS REPORT

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