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November 23, 2020
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Bitcoin mining reaches a new annual high

The profitability of Bitcoin mining has never been higher, reaching its annual peak.

In 2020, Bitcoin had periods of decline and increase. During the March-April pandemic, the world’s largest cryptocurrency dropped to $ 3,000 and many people thought the virtual asset was in trouble. However, Bitcoin has once again stood and currently exceeds $ 18,000.

Bitcoin mining, profitability reaches its annual high

The profitability of the mining of the renowned cryptocurrency returned to the level that preceded the halving of May. This was helped by the growth of the BTC rate above $ 18,000.

Bitcoin mining revenue reached its annual high, the analytical service Glassnode reported on its Twitter account. On November 18, the daily income of the BTC miners was $ 21.2 million.

Glassnode noted that the profitability of producing the first cryptocurrency has also fully recovered from pre-halving levels in May. Then, the reward for finding a block in the currency network has halved, from 12.5 to 6.25 BTC. In this context, BTC’s daily production revenue fell from $ 20 million to $ 7 million.

The recovery of mining revenue from the main digital currency was helped by the increase in its value. In May, at the time of halving, Bitcoin was trading in the range of $ 8,500 – $ 9,000. Since then, the asset rate has increased by about 100%, to $ 17,500, and yesterday, November 18, it went from $ 18,400.

The favorable effect on the profitability of Bitcoin mining has also reduced the complexity of its production. In early November, that number fell 16% to 16.78 trillion hashes. But after the last recalculation, the complexity has grown again – the current value is 17.60 trillion hashes.

How much will Bitcoin cost by the end of 2020?

The analytics company published the main findings from its current year report. Experts explained that in the next 12 months BTC could beat its new historic high.

By 2020, Bitcoin will bring investors more than 100% profit, experts at the analytical firm Fundstrat Global Advisors believe. The company’s co-founder, Tom Lee, published the main findings from this year’s report. According to analysts, BTC has a high probability of surpassing its historic high.

Experts noted:

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

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

  • halving,
  • geopolitical risks,
  • US presidential election.

Last year, bitcoin revenue was 92%, according to this indicator, it surpassed all major asset classes.

At the moment, the average market price of BTC is $ 18,000. A year ago, the asset was trading at $ 3,600. At the same time, the asset’s daily trading volumes increased by 450% to $ 22 billion. Some people also suggest that it will reach the $ 22,000 mark.

Source: cryptonomist

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