Bitcoin miners have experienced a significant increase in transaction revenue, with fees averaging $2 million per day in 2023, a 400% surge compared to the previous year. Jameson Lopp, co-founder of Casa, a Bitcoin self-custody platform, shared this data, noting that miners are finally reaping the benefits of the cryptocurrency’s surging prices. Lopp also revealed that Bitcoin miners earned over $10 billion during the year, a substantial addition to the $57 billion total earned in the past 15 years. However, he clarified that this figure assumed miners instantly exchanged their coins for fiat currency, which is not entirely accurate as miners tend to hold on to their Bitcoin.
This positive trend for Bitcoin miners follows a report by Messari, which indicated a significant increase in venture capital investment received by BTC miners in November. Out of 98 crypto-related deals, approximately 90% of the deals, totaling $1.75 billion, went to Bitcoin miners.
In addition to the increase in transaction revenue, Bitcoin miners earned over $44 million in block rewards despite a 3.55% increase in mining difficulty, which reached an all-time high. The spike in mining difficulty was a result of Bitcoin’s hash rate surging, marking the fourth-highest hash rate adjustment of the year and reflecting a 343% surge within this cycle.
These rising revenues play a crucial role in offsetting selling pressure on Bitcoin and may contribute to striking a balance between supply and demand in the market. This, coupled with the potential approval of spot Bitcoin ETFs, could drive Bitcoin’s price upwards. As a result, market analysts have made predictions that Bitcoin’s price could reach as high as $160,000 in 2024.