Crypto transaction rates are near their highest level in 3 years due to Bitcoin (BTC) hitting $48,000 earlier today.
The price of 1 BTC—currently near the $48,000 mark—is reportedly having an impact on people’s wallets, particularly the wallets of those who mine the digital currency.
If you look at the blockchain data uploaded by analytics firm Glassnode, you’ll see that Bitcoin miners made revenues exceeding $4 million during a one-hour period earlier today.
According to the report, this is the highest level ever recorded on the Bitcoin blockchain. If you’re wondering how this happened, you’d first need to know what happens when you “mine” cryptocurrencies.
What is Mining?
Mining is a process that verifies transactions and adds them to the. Miners run high-speed computers that keep the crypto network secure. For verification, the blockchain directs traders—or miners in this case— t0 solve cryptographic puzzle. The process starts over every 10 minutes or so.
Miners earn two things when they accurately join given blocks of the puzzle: a block reward, which is currently 6.25 BTC, plus fees paid by Bitcoin users to help prioritize their transactions.
This raises earnings to around 37.5 Bitcoin in block rewards each hour—maybe more if seven blocks are processed instead of six. At today’s BTC rate, that equates to $2.1 million.
It’s worth mentioning that most of the money earned by these miners comes from the underlined transaction fees, which have continued to hit record highs since yesterday.
With all the attention diverted towards the blockchain network as the price of Bitcoin ascends toward $50,000, it’s gotten more competitive to get transactions in, and there’s more incentive for users to pay a higher fee. That may be a bummer for the typical buyer/seller, but miners know the game inside and out.