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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 and Fees Surpass $5Bn – $4.8Bn in New Supply

Key Statistics 

Jan-Oct-18 Transaction Value
$337Bn (Estimate)
Jan-Oct 2018 New Supply
$4.8Bn
Spot Market Trading Vol. Jan-Oct
$831Bn
Price
$3707.39
Circulating Supply
17,430,437 / 21Mn (83.0%)

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.

wdt_ID Miner Tx Count Fees ($) Fees (BTC) Incl. Reward (BTC) Incl. Reward ($) Output (BTC) Reward per Tx ($) Reward per BTC Output ($)
1 58COIN 476,572 3,425,548 278 5,516 48,582,754 3,011,826 102 16.131
2 Bitcoin.com 453,074 2,008,906 190 5,527 45,464,815 2,896,999 100 15.694
3 AntPool 8,738,859 47,612,045 4,003 89,328 764,698,220 48,960,153 88 15.619
4 BitFury 870,192 5,382,822 462 11,199 94,664,378 6,609,956 109 14.321
5 BTC.com 14,748,143 62,219,714 5,445 135,314 1,143,824,690 81,199,844 78 14.087
6 BitClub Network 1,407,066 6,450,785 543 12,280 103,924,083 7,385,880 74 14.071
7 SlushPool 7,394,362 29,882,734 2,604 66,242 549,019,643 39,182,387 74 14.012
8 Unknown 8,813,371 21,920,021 2,067 77,092 596,922,463 42,699,535 68 13.980
9 BTCC Pool 1,343,259 6,772,466 586 12,586 112,222,650 8,030,746 84 13.974
10 ViaBTC 7,303,453 31,564,802 2,725 65,250 549,532,655 39,976,511 75 13.746

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.

wdt_ID Miner Tx Count Fees ($) Fees (BTC) Incl. Reward (BTC) Incl. Reward ($) Output (BTC) Reward per Tx ($) Reward per BTC Output ($)
1 58COIN 476,572 3,425,548 278 5,516 48,582,754 3,011,826 102 16.131
2 Bitcoin.com 453,074 2,008,906 190 5,527 45,464,815 2,896,999 100 15.694
3 AntPool 8,738,859 47,612,045 4,003 89,328 764,698,220 48,960,153 88 15.619
4 BitFury 870,192 5,382,822 462 11,199 94,664,378 6,609,956 109 14.321
5 BTC.com 14,748,143 62,219,714 5,445 135,314 1,143,824,690 81,199,844 78 14.087
6 BitClub Network 1,407,066 6,450,785 543 12,280 103,924,083 7,385,880 74 14.071
7 SlushPool 7,394,362 29,882,734 2,604 66,242 549,019,643 39,182,387 74 14.012
8 Unknown 8,813,371 21,920,021 2,067 77,092 596,922,463 42,699,535 68 13.980
9 BTCC Pool 1,343,259 6,772,466 586 12,586 112,222,650 8,030,746 84 13.974
10 ViaBTC 7,303,453 31,564,802 2,725 65,250 549,532,655 39,976,511 75 13.746

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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