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Bitcoin Mining Profits Have Doubled in 7 Weeks Despite Network Congestion

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Gherardo Fiorenzo
Gherardo Fiorenzo is an Italian author with a unique perspective shaped by his experiences in Italy and the US. His thought-provoking articles, short stories, and reviews explore the intersections of language, identity, and culture.

data on the chain on May 7th shows that profitability of bitcoin (BTC) miners is on the rise.

Bitcoin miner profitability has doubled

BitInfoCharts reveals this for every TH/s of hash rate, which is computing power It is directed to Bitcoin networka miner earns $0.0988 per day.

the spike in It stands for miner profitability gear operators They make profits as fast as they can pace in Three months. He. She should also It should be noted that the average miner has profitability more from weakness in the last Three months at spot rates. like of On March 12, it settled at $0.0589 but held on rising.

Usually, profitability of Miner depends largely on network activity, spot BTC price, and ease of Ban confirmation.

The ease of bitcoin roadblock confirmation measured by dominance difficulty levels. This scale shows how plain or hard that it for miners l confirm And add Mass of Transactions for the longest chain in exchange for 6.25 BTC and ban fee rewards.

On May 4, it fell from record Up 1.45% to 48.01 tons after five consecutive positive revisions from late February 2023.

Network congestion, bitcoin prices rise

So far, the Bitcoin network, judging by the number of onTransaction chain posted, in high year. when writing on May 7th, there it was over 400,000 pending transactions on bitcoin memory poolotherwise known as Mempool.

Mempool where unconfirmed but valid transactions are “stopped” before they are confirmed and added to mass.

but, how fast Confirmed transaction depend on Whether the sender places a sufficient fee to incentivize the miner to confirm And add to next roadblock.

Thus, tagged fees are a limiting factor how fast A BTC transaction can be mined and transferred across network. In general, the average block time is 10 minutes. This is encoded in protocol level f directly It affects the scalability of Bitcoin.

High profitability of the miner also coincide with Relatively high prices. Since it fell to $0.0589 on On March 12, the price rose steadily, peaking at $31,000 in April before hiring for spot levels. This is still relative higher from on March 12, when prices fell below $20,000. Since then, BTC has risen by 45%, reaching spot levels.

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