By 2023, Bitcoin Miners’ Transaction Revenue Will Close 400% YoY Surge.

By 2023, Bitcoin (BTC) miners have collected an average of $2 million in transaction fee revenue per day, according to data from Coinmetrics.

The value showed a growth of 400% compared to last year's average.

The income of Bitcoin miners increases every year

According to a December 23 post by James Lopp, co-founder and CTO of BTC self-sustaining solutions company Casa on X (formerly Twitter), Bitcoin miners will generate more than $10 billion in revenue by 2023, adding $57 billion in total. Collected in the last 15 years.

By 2023, the average revenue collected by Bitcoin miners from transaction fees is nearly $2,000,000 per day. This has increased by 400% year on year. pic.twitter.com/zZjUwy1Gbh

— Jameson Lopp (@lopp) December 23, 2023

In the post, Loop speculated that the assumption meant miners would immediately convert Bitcoin to fiat currency. But he said that's unlikely because miners often accept “HODLing” on their Bitcoin holdings for long-term gains.

This month, miners' total daily rewards and transaction fee revenues hit an annual high of $64 million, a 400% year-over-year increase, according to data from Ycharts. Since the beginning of December, daily mining activity revenue has not dropped below $33.85M, indicating a huge profit for miners in Q4 2023.

CoinMetrics shows that quarterly mining revenue in 2023 will exceed $2B over the previous three quarters, with transaction fees collected by miners rising to over $180M in Q2 and Q4.

Mining hashrate and difficulty are increasing as the profitability woes increase.

In the year In 2023, the Bitcoin network saw a significant increase in mining hashrate. According to Koinu metric state of network Q4 2023 mining progress, the rate jumped from 250 EH/s to 480 EH/s.

The increase in hashrate has led to a 26% increase in Bitcoin mining difficulty over the past three months, according to Coinwarz data.

With the increase in BTC mining hashrate and difficulty, profitability may take a downturn, and the upcoming halving event may spell more misery for miners in general, as the event is set to reduce rewards from the current 6.25 to 3.125.

However, experts believe that Bitcoin's halving could eventually reduce the rapidly growing problem of mining. Additionally, an increasing hashrate indicates an improvement in network security, which could quickly help BTC's price pay off in a bull market.

Earlier this month, CryptoQuant's Chief Researcher Julio Moreno is showing that the bull-bear market cycle indicator on X has recently moved into a bullish period for the first time since July. Based on the indicator, Moreno believes that block rewards increase faster than mining difficulty, increasing miners' profitability even as mining difficulty increases.