As per the prominent data metrics website, Glassnode, Bitcoin (BTC) mining revenue has actually managed to double its recorded numbers from two years ago – successfully hitting the $20 billion mark. The site’s CTO, Rafael Schultze-Kraft, supplemented this by stating that today’s BTC miners have now earned as much money within the past two years compared to the first decade of the dominant crypto.
Experts believe that this surge in BTC mining money is mostly due to the crypto’s meteoric rise following its fall from just about $5,000 last year when the pandemic hit. Since then, BTC grew in value by more than 340% – now flirting above the $35,000 mark – with the industry believing that it is still on the rise.
However, the increased interest and demand for the crypto also means that the difficulty of actually having a hold of it is also rising. In parallel to the increase in the market value of BTC, its hash rate also grew by over 41% – reaching its highest value in history earlier this month.
Taking all these factors into consideration, some may now wonder whether Bitcoin mining is still profitable today despite the overwhelming amount of money currently circulating in the particular industry. Without saying, plenty of aspects must first be closely observed in order to answer said question convincingly. That being said, the analytical website CryptoCompare’s profitability calculator certainly believes that the industry can still generate excellent profitable values.
Without diving into the specifics, CryptoCompare concludes that BTC miners may still generate about 226% profit daily over operating costs, assuming that the miner is utilizing the latest mining hardware. Furthermore, the site notes that the most efficient and quickest way to generate substantial profits is to reduce electricity consumption by securing low-cost energy operation plans.
Galaxy Digital’s recent entry into the mining industry reaffirms this notion. As announced today, the crypto investment firm launched its very own digital mining platform, called the Galaxy Digital Mining. Chris Ferraro, co-president of Galaxy, states that the firm sees several profitable opportunities within the mining industry, and it is only right for them to capitalize on it.