29. November 2020

Bitcoin: mining has updated its annual maximum

The profitability of Bitcoin mining has never been so high, reaching its annual peak. In 2020 Bitcoin experienced periods of decline and growth. During the outbreak of the pandemic in March-April, the world’s largest cryptocurrency dropped to $3,000 and many people thought the virtual currency was in trouble.

However, Bitcoin has recovered and is currently over $17,000.

Bitcoin mining, profitability increases at a maximum annual rate
Mining profitability of the renowned cryptocurrency has returned to pre-May halving levels. This was aided by BTC’s price growth above $18,000.

The mining revenue from Bitcoin has updated its annual high, as reported by Glassnode’s analysis service on its Twitter account. As of 18 November, the daily income of BTC’s miners was $21.2 million.

Glassnode reports that the profitability of the famous cryptocurrency has also fully recovered pre-May halving levels. As a result, the reward from the discovery of a block in the grid halved from BTC’s 12.5 to 6.25. Against this, BTC’s daily production revenue fell from $20 million to $7 million.

The growth in the value of digital money was boosted by a recovery in miner revenues. In May, at the time of halving, Bitcoin was worth $8.5-9 thousand. Since then the price of the asset rate has increased by about 100% to $17.5 thousand and yesterday, on 18 November, it rose above $18.4 thousand.

The favourable effect on Bitcoin’s mining profitability has also reduced the difficulty of its production. At the beginning of November, this index fell by 16% to 16.78 trillion hash. But after the last recalculation, complexity has increased again – the current value is 17.60 trillion hash.

How much will Bitcoin cost by the end of 2020?
The analysis company has published the main results of its report for the current year. Experts have explained that in the next 12 months the first cryptocurrency could update the historical maximum value.

According to the experts of the analysis company Fundstrat Global Advisors, Bitcoin will bring investors more than 100% profit in 2020. The company’s co-founder, Tom Lee, has published the key findings of this year’s report. According to analysts, there is a high probability that the first cryptocurrency will update to its highest historical value over the next 12 months.

They observed the experts:

“In 2020, the return on investment in Bitcoin and other cryptocurrencies is expected to exceed the 2019 return. The economic model of the crypto and Bitcoin space is set to improve”.

They believe that the rapid growth in the price of digital assets will be due:

Halving,
to geopolitical risks,
the election of the President of the United States.
Last year, Bitcoin’s turnover was 92%, based on this indicator it exceeded all major asset classes.

Currently, the average market price of the renowned cryptocurrency is $17,000. A year ago, the asset was trading at $3600. At the same time, daily trading volumes of the asset increased by 450% to $22 billion. Some also suggest that it will reach the $22,000 threshold.

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