But what the hell is Mining Bitcoin? Simple, mining Bitcoin or any other cryptocurrency is the process of adding new transactions to the network, in this case Bitcoin, to ensure the security and integrity of the network. Miners are people or companies who use powerful computers to solve complex mathematical problems, known as "proof of work". By solving these problems, they validate the transactions made with Bitcoin and add them to a public record called a Blockchain. Essentially, Bitcoin mining involves competing with other miners to solve these mathematical problems since the more computing power a miner has, the greater their chances of being the first to solve the problem and receiving a reward in Bitcoin. This reward is a way to encourage mining and also to introduce new bitcoins into the system. Besides earning bitcoins, miners also play an important role in Bitcoin security, they verify the Authenticity of transactions and ensure that no transactions are fraudulent. In short, Bitcoin mining is a validation and security process that underpins the functioning of the Bitcoin network.
Increased Revenue for Miners
Bitcoin $BTC miner revenue hit a record high last May, generating $919.22 million. The bill includes Block grants and network fees paid by users. Data are from The Block Research. This marks the third straight month of record highs since June 2022, when activity generated $673 million. In March of this year, his mining revenue reached $755 million and shortly after that he reached $800 million in April. What seems to have contributed to the previous record break is a significant increase in the share of network fees in miner revenue. May saw the largest share of Commissions as a percentage of total revenue for this period. The user received a commission of $125 million, which is his 13.7% of total revenue for the month, for comparison, miners received only $235 million (2.92%) of the $800 million or more in network fees in April. The percentage of commissions he increased more than fourfold from one month to the next. Part of this increase in fees can be explained by a related increase in the number of confirmed transactions within the Bitcoin network it 16.3 million transactions were executed in May. This is a 51% increase from April 10.73 million.
On May 7th, the blockchain surpassed the Bitcoin Memorypool record for delayed transactions. Mempool is a virtual memory space that BTC sends (or uses) and waits for confirmation from miners. According to Bit Info Charts, the last event sent network fees to an all-time high of $31, This is the average amount that all his BTC users had to pay to receive a transmission on the blockchain. This means that for the second time in Bitcoin history, the miner has Profited from more fees per block than he has subsidized at 6.25 BTC. Bitcoin mining difficulty has matched and even surpassed historic levels with the most recent 3, The new positive adjustment will require Bitcoin miners to compute about 51.23 trillion hashes before mining a valid block. It has never crossed the 50 trillion mark in the past. This makes it 3% harder to successfully mine cryptocurrency blocks. This also means that mining activities cost 3% more in terms of resources required to achieve the same result.
Conclusion
In these two months although we had some good news as the acceptance of Hong Kong exchanges in the region that you can follow my post about it here: Hong Kong One Step Ahead of China on Cryptocurrencies, and others with the announcement of tax rate increase regarding the United States. I do not see bitcoin buying so far a current valuation opportunity and I expect an even bigger drop by the end of July, maybe below 26k? That would be a buying opportunity if it happens, not only in Bitcoin's view. But other alternatives that should be dragged down by the effect like Ethereum, Cardano or even Hive.
Depending on the cost of electricity in your locality with the cost of the process of setting up acceptable equipment to mine $BTC, it might be the best investment you could make, rather than purchasing large amounts of the token and leaving it in your wallet.
Text translated using DeepL
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