Quick Take
Recent conversations concerning Bitcoin miners have been dominated by the trend of miners moving their coins to various exchanges. However, it’s crucial not to overlook the core trend: the continuous growth in the aggregate balance of miners.
Despite these transactions, miners are still retaining a significant proportion of the Bitcoin they mine, underscoring a consistent trend toward accumulation.
Revenue from fees
Interestingly, there’s also a rising curve in miners’ revenues, largely driven by escalating transaction fees. This increase can be linked to the surge in Bitcoin network activity, reflected in the growing number of new registrations and the escalating popularity of BRC-20 tokens.
The last 18 months have been particularly impactful for miners, as evidenced by their higher beta performance relative to Bitcoin itself. This higher beta signifies that miners’ returns have experienced greater volatility than Bitcoin, hinting at the possibility of higher gains, albeit with an increased risk factor.
Despite the spotlight on miners transferring Bitcoin to exchanges, the overall trend in their balance and revenue signals positive growth. Their high beta performance in comparison to Bitcoin over the past 18 months further accentuates the dynamic and potentially profitable realm of mining activities
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