TronWeekly

Crypto World News

You are here: Home / Archives for miners

miners

Dogecoin [DOGE] miner revenue scores a new All-Time High at $1B

by

Dogecoin [DOGE] had an incredible start this year, bringing a record number of miners to its network. DOGE’s all-time mining revenue hit a new peak at $1 billion in the month of November, according to the latest stats provided by data analytics platform, Coin Metrics. Earlier on November 13, 2021, the total all-time miner’s profit exceeded the $1 billion mark for the first time. As of December 9, the overall miner’s income currently stands at $1.08 billion.

photo 2021 12 11 11.06.51 1024x606 1
Dogecoin [DOGE] miner revenue scores a new All-Time High at $1B 2

It is worth mentioning that the total revenue of the meme coin mined on January 1st, 2021 touched $108 million. Since then, it has increased tenfold as the asset gained popularity and garnered public attention.

Notably, the growth in miners’ revenue started gaining traction and accelerated during the month of April and May, which coincides with the surge in the price of DOGE in the broader market, as investors began to turn their attention to the asset around this period. As a result, this provided an opportunity for the miners to reap benefits from the coin’s increasing popularity.

The principle behind Dogecoin mining

Dogecoin’s network employs the same principle as Bitcoin [BTC], Litecoin[LTC], and many other assets, by adding new blocks and reaching agreement among its network operators. In particular, DOGE and LTC use a common hashing algorithm called Scrypt enabling both to “merged mined”. This meant that both coins can be minted simultaneously without affecting operational efficiency.

As a matter of fact, the two asset shares a common algorithm because dogecoin’s protocol is based on Luckycoin [LKY], which in turn was designed from Litecoin. Comparing the two, leading crypto blogger Colin Wu observed,

“Dogecoin miners’ income has increased significantly this year. As of December 9th, the total income is $1.08 billion. The mining mechanism of Dogecoin is a bonus for mining Litecoin, but the income this year has exceeded that of Litecoin.”

At press time, Dogecoin is trading at $0.16, rising by 1.4% in the past 24 hours. On the weekly index, the asset declined by 3.87%. The canine token has been on a downward trend since its previously established peak of $0.7004 on May 8, this year.

Are Bitcoin [BTC] Miners gearing up for a big bull run?

by

The battle for $50k continues as Bitcoin [BTC] takes a breather from making any significant moves. For miners, on the other hand, it has been an interesting year. From Bitcoin’s abrupt sell-off to the Chinese exodus, BTC miners have been on the receiving end of significant changes this year.

According to the latest stats, miners are not just HODling but have finally managed to strengthen their position in the market despite a series of market damaging corrections, rallies, and consolidations. As a result, the profits have increased for the first time since the migration of Chinese miners to different parts of the world. The blockchain intelligence firm, Glassnode stated that Bitcoin miner balances are increasing once again.

Additionally, Miner Unspent Supply, in other words, the balance held in miner wallets, has increased by 13K BTC since January. Besides, the small spend of 1,360 BTC in late August has had no significant effect on the overall trend. This comes at a time when all the crypto exchanges have reduced their BTC reserves to the lowest point since September 2018.

Its tweet regarding the same read,

“Bitcoin miners have been in accumulation mode over the last 6 months, with the unspent supply climbing by 13,000 $BTC since January. After a small spend of ~1,360 $BTC in late August, it appears miner balances are increasing once again.”

miner
Are Bitcoin [BTC] Miners gearing up for a big bull run? 5

Bitcoin [BTC] hash rate aims for pre-June levels

The rising hash rate is a further testament to the increasing optimism among the Bitcoin miners and fortifying their footing in the market. After hitting an ATH of almost 200 exa hash/sec, the BTC hash rate slid below 70 exa hash/sec briefly. Due to Chinese restrictions, miners had found themselves in a dicey situation. However, the figures recovered in tandem with the price action.

BTC
Are Bitcoin [BTC] Miners gearing up for a big bull run? 6

According to the data compiled by BitInfoCharts, the hash rate was hovering close to June levels near $155 exa hash/sec. At the current recovery rate, it may seem that the hash rate could surpass its all-time high by the year-end. However, the migration has been slower than expected, which could impede the growth trajectory.

Bitcoin Miner Holdings Appears To be Wanning; Here’s Why

by

Bitcoin miners have been Holding Bitcoins for quite some time now. The increased bullishness in the market that materialized in the next couple of months. However, on-chain metrics depicted a change in this trend. According to the latest report by CoinMetrics, the network miners have been holding less Bitcoin of late.

Meaning, that the percentage of the supply held by Bitcoin miners has decreased over time.

Bitcoin Miners

The report stated,

“On-chain metrics like miners’ holdings and net transfer volumes indicate that miners’ influence on the network is slowly waning. Nonetheless, they’re still responsible for a substantial amount of activity and control a significant portion of the total bitcoin supply. Some metrics, like gross flow volumes, also hint at increasing miner activity in both dollar and bitcoin terms.”

Bitcoin Miners’ Predicament

Miners earn revenue in Bitcoins. However, their operating expenses, chiefly electricity and rent, are primarily fiat-denominated. Hence, this added pressure to sell Bitcoin for Fiat to meet these needs which is one of the most crucial factors that highlighted the decline in the miners’ holdings of the asset.

The research specifically analyzed two types of addresses connected with block rewards that found that there has been a consistent decline in miners’effect on liquidity. It’s not just the addresses that receive the block reward, witnessed a significant reduction, the ones that receive immediate transactions from them also saw a considerable decline in the number of coins held.

Miners, especially those active in the network’s early days, still control a significant amount of BTC, revealed CoinMetrics. However, it is the number of coins held by miners has generally declined throughout the network’s history. Having said that, they still remain key players in the ecosystem with access to large amounts of capital.

Around the last week of August, miners’ BTC holdings peaked. During this time, Bitcoin was hovering close to $11,000 and felt holding for a while possibly in anticipation of a higher price in the coming days which did transpire as the crypto-asset now targeted to breach $14,000.

Dogecoin Clinches Top Position Among Most Profitable Altcoins to Mine

by

An altcoin that only started as a meme/joke coin in 2013, is gaining traction as one of today’s most speculated coins. Apart from its price rallying upwards by extreme percentages, Dogecoin sets itself apart as a profitable altcoin for miners. The original design of Dogecoin was inflationary, and this is the main factor in the mining benefits of the coin.

Dogecoin Value has Grown , Posting High Percentage Spikes Over the Past Few Weeks

Unlike Bitcoin, whose mineable limit is within a total supply of 21 million Bitcoins and only 6.25 Bitcoins per block reward (currently); Dogecoin’s mineable coins are unlimited and its blockchain pumps at least 10,000 Dogecoins into circulation every 10 seconds.

The value of the digital coin has grown and last week saw a 50% spike. Dogecoin has recorded the highest single day  gain since 2017 and according to google trends keyword search metric, “How to Buy a Dogecoin? “It rose from a score of 25 to 100. Therefore recording the highest possible popularity for a google search over the last one year. As a result, the performance has warmed up the cryptocurrency community including miners and traders. 

Factors to Consider Before Mining a Digital Coin

While the surging price of a coin is not the motivating factor surrounding a spike in the interest of the miner. Dogecoin has emerged as the favorite altcoin for crypto miners, given its high mining rewards that beat some of the leading coins, such as Bitcoin SV and Bitcoin Cash. Some of the factors miners consider before choosing a coin to mine are block reward, cryptocurrency price, equipment efficiency, halving and block generation duration. All these factors seem to be aligned in favor of Dogecoin. For instance, the altcoin has a block generation time of 60 seconds, and a block reward of 10,000 coins.

Conclusion

The coin’s scrypt protocol sets Dogecoin’s mining equipment apart, compared to other coins; because its equipment is affordable and efficient. 

Bitcoin Price Needs To Be Higher Than $7000 For Miners To Have a Profitable Post Halving

by

It has only been 3 months into 2020 and Bitcoin has already witnessed a turbulent time in the digital asset space. However, a major event which is yet to commence in 2020 is the Bitcoin halving.

Bitcoin halving is one of the mechanisms in the BTC code, which is irreversible and inevitable. Bitcoin’s anonymous developer, Satoshi Nakamoto included a slash in supply in order to cope up with inflation and over the past two halvings in 2012 and 2016, miners have managed to remain profitable after the reduction of block rewards.

However, the global financial market is currently undergoing a tumultuous meltdown amidst the impact of COVID-19, and Bitcoin’s current valuation was raising serious concerns for the miners.

Miners Profitability after Bitcoin Halving

Gate.io recent’s research on the Influences of Bitcoin halving indicated that historically, a halving event has triggered a price rise after a few months post halving and the hash rate has improved as well.

The major concern was Bitcoin has never experienced a halving amidst a global financial crisis. Although popularly deemed as an uncorrelated asset, BTC’s increased correlation with S&P 500 rang bearish alarms across the industry, raising questions about Bitcoin’s valuation post halving.

In light of the scenario, a study was conducted to understand the price range of BTC above which miners will remain profitable posting halving.

The report explained that when BTC price drops below the cost or overall maintenance of a mining rig, it can no longer make profits from the block rewards.

The term used by the research is ‘shut-down price’ for miners which are self-explanatory with regards to Bitcoin’s value.

Image 1 1

Image 2 1

Analyzing the above charts and mining rigs available in the market, it can be identified that Bitcoin has to consolidate at least above $7234 post halving for miners to be profitable. The AntminerS19 Pro indicated the least shut-down price, but that particular rig is yet to be available in the market.

If we run an average shut-down price on all the 25 mining rigs, the average shut down price for Bitcoin came up to a whopping $25,385.

Additionally, the report stated that the possibility of miners switching their mining rigs would increase since they would need to be cost-effective in order to incur profit from BTC mining.