Bitcoin Miners Earned Only 3.6% of 2T Market Value – Analysis
Bitcoin (BTC) miners have earned more than $70 billion since the creation of the Bitcoin network.
According to an analysis released on December 11 by onchain analytics resource Glassnode, Bitcoin users paid miners $71.49 billion.
Mining revenue reflects a “very large” security value
Bitcoin at $100,000 is a great opportunity for miners, but looking back at the history of the industry, some surprising figures stand out.
Despite processing tens of billions of dollars in transactions, mining revenue accounts for a tiny fraction of Bitcoin's market cap.
“As of December 5, miners have earned a total of $71.49 billion for their computational efforts. This revenue includes $67.31 billion in block subsidies for generating new coins and $4.18 billion in transaction fees paid by users.
“This represents just 3.57% of Bitcoin's $2 trillion market cap, representing a tremendous return on investment security budget.”
Bitcoin mining revenue distribution (screenshot). Source: Glassnode
The accompanying chart reflects how small the revenue from transaction fees is. Of the total of 71.49 billion dollars, payments took only 4.18 billion dollars.
Total BTC transactions, excluding internal transfers through exchanges or institutional investment products, amount to around 840 million.
“Measuring the dollar value of these transactions at the time of confirmation, the Bitcoin network generated $131.25 trillion in volume,” Glassnode continued.
“After applying the legal entity adjustment, the net transfer amount is $11.63 trillion, which is only 8.86% of the total.”
Bitcoin transaction count analysis (screenshot). Source: Glassnode
The army of Bitcoin mining companies is on
As Cointelegraph reports, official Bitcoin miners have gone from strength to strength in a year with Bitcoin hitting repeated new all-time highs.
Related: Bitcoin Analysis: Start Selling BTC When This Key Indicator Reaches 4%
Shares jumped 8% when Hut 8 announced a stock buyback program to create a strategic bitcoin reserve, with a two-month BTC purchase by veteran Mara Holdings worth $600 million through early December.
Rounding out the overview, Glassnode noted that the Bitcoin network's hash rate remains near all-time highs.
“Based on hashrate near all-time highs and highly distributed holdings, Bitcoin is well positioned for an increasingly important role on the world stage,” he wrote.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
