Bitcoin Economics

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State of Play

While far from perfect, Bitcoin remains one of the handful of digital assets than can fulfil its intended purpose. While scaling to a traditional payments network size remains far in the distance, fees have dropped and volatility subsided. The Lightning Network continues its development. However, efforts may bear little fruit as the community continues its viewpoint of replacing gold. As a result, merchant adoption hopes currently stand little prospect.


Miner Revenues From Bitcoin Coinbase Reward North of $5Bn in 2018

Key Statistics 

Jan-Oct-18 Transaction Value
$337Bn (Estimate)
2018 New Supply
$5.2Bn
Spot Market Trading Vol. Jan-Oct
$831Bn
Price

Circulating Supply
/  ()

While only 3% of total supply, new Bitcoins entering the market from miners is just a few weeks shy of hitting an immense $5Bn. Accounting for miner fee's for transactions, the mark has already been breached. Already, to date, new supply in US Dollar value has surpassed last year by 70%. The amount is 10-fold versus 2016.


Not all Mining Pools Equal? Depends..

Whilst Bitcoin's mining reward and fee algorithm is non-discriminatory, miners and the pools they join face complex economic realities. Data crunching shows that on a BTC Output basis, some mining pools have reaped ever so slightly better rewards. From the most efficient to the least there is a 20% difference in US Dollar reward per BTC output. And while transaction count is a watery metric, it is telling that miners outside of pools have the lowest reward per transaction.

[wpdatatable id=216]

Notes: The period above is from January - October 2018. The table above is ranked by "Reward per BTC Output ($). All mining pools above have been active from the start of the year, and continue to mine. BTCC Pool is winding down operations.

[wpdatatable id=217]

Notes: The period above is from January - October 2018. The table above is ranked by "Reward per BTC Output ($). All mining pools above have been active from the start of the year, and continue to mine. BTCC Pool is winding down operations.

Miner Profitability?
Miners who have access to wholesale electricity prices remain quite profitable. But the estimates below don't take into account several factors that could push them into the red. Mining equipment costs, pool fees, rents, salaries and downtime could soon make for a close call at current prices.

Wholesale Still Profitable or is There More Than Meets The Eye?

Retail Electricity Prices Push Miners Full into the Red in Oct-18

Recent Bitcoin Coverage by Diar

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