By Shelly Melancon (Switzerland)
A report based on the quarterly research from the ETC Group places the annual revenue run rate (ARR) earned by Bitcoin miners at about $2.986 billion based on projected revenue from April. The Bitcoin blockchain created by the anonymous Satoshi Nakamoto is a self-governing decentralised financial system that rewards people for creating new currency by calculating complex equations to create new ‘blocks’ in the system. This process is what is referred to as mining and the revenue for this is what has been calculated by the ETC group. The calculated figure places the total revenue earned by Bitcoin miners higher even than some top tier companies including e-commerce giants Square and Shopify.
The ETC Group defines itself as an action group focused on addressing the socio-economic and ecological issues encountered by the adoption of new technologies that could have an impact on the world’s most vulnerable and poorest countries. In their new quarterly research report, they gave a detailed analysis of the performances of some top cryptocurrencies as well as technical and market analysis.
This calculated figure will no doubt catch the attention of multiple detractors to Bitcoin and cryptocurrency at large who have repeatedly stated that the cost to the environment associated with Bitcoin mining is too high a price to pay. There is some truth though, to this as mining operations do require huge amounts of electricity and computing power. The number of resources required however do bear fruit as shown from the reported revenue earned by the miners.
Also read:The report also reflects a significant increase in fees over the past year due to the ongoing adoption of cryptocurrency to the larger society with Ethereum seeing a gain from an average of around 400 Ether last April to over 20,000 Ether in a year and Bitcoin seeing an increase from 15 BTC to almost 300 BTC in a similar period.
Bitcoin Continues Its Stellar Performance
Increasing adoption of Bitcoin over the past year is also reflected in the report by ETC with the CEO, Brady Duke Stating that increased adoption of cryptocurrency by institutions has generated more revenue than some of the world’s most valuable companies. The group also states that an increase in Bitcoin revenue and its positive effect on the market at large correlates to the adoption of it by mainstream institutions and countries such as El Salvador.
While some entities such as Wall Street, China, Russia and a slew of others remain hostile to it and sceptical to its adoption, some have embraced it as the next step in finance and adopted cryptocurrency payments to their structure.
This has been largely positive to the general market with Bitcoin and leading cryptocurrencies seeing massive growth over the past year and tearing way past their previous all-time high levels. This report reflects this with an over 300% rise in transaction volume on Bitcoin, a 1000% average rise in transaction fees and an increment of over 10% to the average daily wallet count over the past year.
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