Despite the criticisms facing cryptocurrency miners’ energy-consuming actions, the Bitcoin mining space has continued to thrive. Bitcoin mining continues to face several criticisms from mainstream society, as many believe that mining the cryptocurrency’s economic and social impacts are exhaustive on society.
There have continued to be calling from many individuals in society concerning these miners’ actions, as they have implored the miners to look towards an alternate source of power and energy for their operations. However, according to a new report by Glassnode, the miners have been getting hefty rewards since the beginning of last month, and surprisingly, they have to hoard their digital assets.
The mining hash rate is at an all-time high
According to the data gathered by the crypto analytics firm, the miners have started to save up their earnings on many exchanges, as against the usual practice of cashing out on them. According to Glassnode, there has more than a 30% increase in transfers from miners to these exchanges since the beginning of the year. Miners have refrained from selling their earnings since early March, suggesting that they are now hoarding their assets.
Fortunately, this hoarding season from the miners has coincided with a very profitable mining season, as miners have started posting massive earnings. According to the Glassnode report, the gross amount of unspent Bitcoin is currently at an ATH of 1.76 million BTC. The detailed report also shows that, at the moment, the mining hash rate is at an ATH of 177 EH/s.
The data analytics also compared Bitcoin mining’s performance from the last year, as it shows that Bitcoin miners’ revenue has increased by a whopping 290% in the last twelve months. However, the reason behind such a massive increment is the price of Bitcoin, which had gone higher by more than 300% in the last year.
Miners likely waiting on Bitcoin
The CTO of Glassnode- Rafael Schultze-Kraft, while explaining the report, believes that the miners’ fortunes have not only relied on the performance of Bitcoin, as he believed that there has a lot of expansion going on within the space. The Executive believes that the miners are no motivated to sell, as there needs to be some form of recovery in the portfolio.
Bitcoin mining is not just an energy-draining activity; it is also a very high-cost activity that requires the miners to purchase expensive mining rigs and pay for high energy usage. However, Schultze-Kraft believes that most miners will rather hoard their assets, as against selling, as they would love to maximize their profits when Bitcoin enters a bull run.
However, like many analysts, Schultze-Kraft is optimistic about Bitcoin, which has continued to startle around the $60K. At the time of writing, the digital asset is currently trading around $56K, as it has struggled to either surpass the $60K mark or hit a new all-time high since early March.