on the crypto
Following China's ban on mining, other countries around the world have opened their ways to run mining, which is now recovering. Now, in terms of mining revenue, BTC miners generally dominate the industry. However, according to CoinShares Research, the trend has apparently reversed over the past three months. As a result, ETH miners have maintained an edge over BTC miners in terms of gross revenue in recent times.
Why did the situation turn around?
Data for August showed that ETH miners earned $ 1,98 billion in revenue while BTC miners earned $ 1,4 billion. Both the transaction fees and the block rewards constitute mining revenue along with the price of the asset at that point. And ETH miners earned over $ 690 million in transaction fees versus $ 18,72 million made by Bitcoin miners in August.
BTC miners appear to derive much of their income from mining rewards of 6,25 BTC per verified block rather than transaction fees. According to the research, this is the longest period in history, where ETH miners have beaten BTC miners in terms of revenue.
But will higher revenues alone determine profitability?
Not necessarily. Bitcoin has a high operating cost and ETH EIP-1559 can impact revenue in the short term, for Ethereum. However, this has not been the case so far. Up until August, both transaction fees and the price of ETH supported ETH's mining revenue.
The base rate consumption rate after the upgrade was also covered by priority rates and tips. At press time, the burn rate was 7,11 ETH / min. Even the increase in activity and the quotations bullish appear to further support earnings.
Based on the cost calculation, including electricity, CoinWarz analysis, ETH's mining revenue was $ 38,23 and profit was $ 36,43 per day. Due to the high cost of electricity, BTC mining revenue was $ 39,02 and the profit was $ 31,22 per day at press time. Thus, ETH's mining profit margin stood at over 94%, which was higher than that of BTC, at 90%.
Meanwhile, the latest data from Glassnode points to the Netflow Volume of miners
It is currently at a one-month low, down -15,913 BTC on September 5th. Simply put, negative flows reflect the liquidation by miners of BTC. It can also precede a difficulty update on the Bitcoin network.
BTC is expected to review its 17,62 T difficulty as the hash rate is steadily improving and stands at 128,53 EH / s at press time. A greater difficulty can, therefore, further hamper the revenue of BTC miners.
