Bitcoin mining is on the rise worldwide, and the increase in activity in Latin America (Brazil, Venezuela, Paraguay, and Argentina) has also been remarkable in recent months.
Bitcoin mining is a process that provides computing power to process transactions and secure and synchronize all users on the network.
It is a type of decentralized Bitcoin data center with miners all over the world.
Unlike gold mining, Bitcoin mining has a reward for useful services, and each Bitcoin share’s payout is based on the computing capacity provided.
Bitcoin miners have been an integral part of the network from day one.
Fourteen years after birth, they have reached a remarkable profit milestone since the cryptocurrency started trading on the market.
According to Glassnode, an analytics firm, miners have generated US$50.2 billion in revenue since bitcoin trading began in 2009/2010.
This includes the rewards the network gives miners on a block-by-block basis and the commissions paid to miners, which have increased recently.
The cumulative profit of Bitcoin miners since 2010 is US$13.6 billion if production costs are subtracted.
According to the report, these amounted to US$35.8 billion.
This includes electricity consumption, maintenance, and infrastructure costs.
These figures result in a net surplus of US$13 billion and a historical profit margin of 37%.
Regarding the latter, Glassnode states in a report published in March that “profit margins have been very tight since 2015.”
The rise in the hash rate suggests that more miners are joining Bitcoin to contribute to the operation of the network and earn rewards in return.
Bitcoin miners had a difficult 2022, mainly because of the cryptocurrency’s bear market, significantly reducing their revenues.
However, in April 2023, they finished an extremely positive month, with profits of almost US$3 million, the highest in almost a year.