The month of January was a very fruitful one for Bitcoin miners, seeing as they’ve managed to accrue over $1.09 billion in revenue for that month. This stands as one of the highest revenues for a single month ever recorded, only being beaten by the great bull run of 2017, particularly December of that year.
Massive Revenue Spikes Thanks To Price Spikes
The only other monthly recorded revenue that could come close to January 2021’s numbers in January of 2018, having accrued a total of $1.02 billion in revenue. However, December of 2017 still holds the record, managing to amass a total revenue of $1.25 billion at its peak.
Last month’s $1 billion in revenue consisted majorly of block subsidies, a total of $977 million, to be exact. This has seen a spectacular increase in value when you compare it to December of 2020’s numbers, which is thanks to the BTC price skyrocketing from $30,000 to as much as $42,000 during that time.
Mining Equipment Sees Supply Squeeze
However, the expected growth in mining difficulty had failed to occur. This more or less static level of mining difficulty is more thanks to the newest supply of mining equipment suffering a shortage, which is slowing its integration within the network at large.
In particular, this supply squeeze started back in December. Bitmain, one of the biggest mining equipment providers out there, has taken advantage of this matter at large. The company has pushed up its prices by 20% since early December, capitalizing on the spectacular increase in ASIC mining rig demand that has been happening ever since Bitcoin pushed past the $20,000 mark, let alone where it is now.
Bitcoin Miners Earning $0.25 Per TH/s
This has had some interesting developments, however. The daily revenue for every miner within the Bitcoin network is as much as $0.25 every Terahash a second (TH/s). These levels of revenue had only been seen back in mid-2019 last.
Bitmain wasn’t the only one enjoying the massive supply squeeze, however. Its main rival, MicroBT, has already made plans to adjust its prices for its new batch of flagship WhatsMiners in anticipation of the price correction.
It seems that the crypto space is very much starting to sustain itself in a very profitable manner. Time will tell how these numbers will change thanks to the fluctuating Bitcoin price, but it’s clear that Bitcoin is very much on a brand new normal. It’s unlikely that the asset will drop to under $10,000 ever again, barring something extremely jarring and dramatic happening, as seen by the COVID 19 pandemic.