In November, total revenues from bitcoin mining increased by 48% compared to October.
The reasons for this increase are two: firstly, the sharp rise in price, and secondly, the higher number of transactions, which generated more fees for the miners.
At this time, 6.25 bitcoin are always distributed to miners every 10 minutes as a reward. In October, a total of about 27,000 BTC were generated and distributed to the miners, which, at an average price of $11,800, corresponds to a total of about $318 million.
In November, around 28,000 bitcoin were produced and distributed as a reward to the miners, resulting from faster block mining due to lower difficulty. At an average price of $16,500, the total value was $462 million, an increase of 45%.
What has caused the increase in revenue in bitcoin mining?
Certainly, the reduction of the difficulty has also had an effect, but the greater impact is derived from the substantial increase in price.
As for the volume of the transactions, and therefore also of the fees, between October 25th and November 2nd, there was a strong decrease. In fact, while in the weeks preceding and following this period the number of daily transactions was almost always higher than 320,000, from October 25th it decreased to less than 280,000, returning above 320,000 only on November 3rd.
In addition, at the end of November, there was the highest peak of daily BTC transactions in recent months, with almost 380,000 transactions in a single day.
This meant that the total fees paid to miners in October were not only lower than those paid in November but even lower than those paid in the previous two months.
On the other hand, the boom in prices in November led to a real boom in fees, probably also due to the rush users were in to move their bitcoin, so much so that it was the month with the most fees of the whole year. In fact, it wasn’t since January 2018 that there hasn’t been a total of so many fees paid to the miners.
As a result, the overall increase in revenue for bitcoin miners in November was 48% higher than in October, which inevitably led to an increase in hashrate after the drop in October.