Big Mining Firms Record Profits As Individual Suffer
Several Businesses have been forced to make adjustments to survive in the highly competitive market.
2018 Records High Revenues In Mining
A review of the bitcoin mining sector in the first half of 2018 indicates revenues have surpassed what was earned during the same period in 2017. However, miners believe that they have not earned from the sector since their profits have greatly declined. The report was released on Monday by Diar.
Diar states that the incentives and charges for bitcoin miners stood at $4.7 billion by the end of June this year. This was an increase of $1.4 billion compared to what was earned back in 2017. The platform reported that miners earned about 54,000 bitcoins on a monthly basis.
It emerged that profits might be declining for individual miners but the case was different for big players. The report noted that big players were making huge profits which are on a constant increase. Diar stated that individual miners incurred losses in power charges hence the unprofitability.
The report assessed that bitcoin mining is the future and it is likely to reap more profits. The report further pointed out that big players are the ones who will earn more.
The competition in the mining sector has forced major players to adjust to the changing market. Diar cited Chinese giant Bitmain. The firm earned a lot of its profits from the sale of mining equipment. The company has recently opened mining pools in North America as a means of maintaining profits.
In a weekly report issue, Diar pointed out that Coinbase with headquarters in San Francisco has suffered a decline in the dollar volumes. The volume is lower compared to 2017. Last year, bitcoin trading on Coinbase stood at about $5.5 billion compared to $4.6 billion as per the first quarter of 2018. The same trend has been replicated on the Bitstamp trading exchange. The exchange's bitcoin volumes are currently standing at about $4.4 billion which is a decline from $4.6 billion recorded in 2017. The figures are based on the first quarter results.
Recently, Bitmain revealed that it had invested $500 million in data center backed by the blockchain. The investment is expected to be rolled out early next year and it is expected to create about 400 jobs for Texas residents.