• Contact Us
  • Privacy & Policy
Friday, January 15, 2021
ModernCryptos
  • Home
  • Live Updates
    • Cryptocurrency Prices
    • Live ICO
    • Live Exchange
  • Crypto News
    • Bitcoin
    • Ethereum
  • Blockchain
  • Regulation
  • Business
  • Market
No Result
View All Result
  • Home
  • Live Updates
    • Cryptocurrency Prices
    • Live ICO
    • Live Exchange
  • Crypto News
    • Bitcoin
    • Ethereum
  • Blockchain
  • Regulation
  • Business
  • Market
No Result
View All Result
ModernCryptos
No Result
View All Result
Home Regulation

Bitcoin’s Share of PoW Mining Rewards Now Above 80%

January 16, 2020
in Regulation
3 min read
0
Bitcoin’s Share of PoW Mining Rewards Now Above 80%
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

Related articles

CoinDesk’s Statement on Coronavirus and Blockchain Week NYC

CoinDesk Takes Consensus 2020 Virtual

March 13, 2020
US Charges Dutch National With Running Crypto-Funded Child Porn Site

US Charges Dutch National With Running Crypto-Funded Child Porn Site

March 12, 2020

Rewards received by bitcoin miners form a major chunk of the salaries paid across major proof of work (PoW) blockchains, according to Yassine Elmandjra, a cryptocurrency analyst from ARK Invest.

For example, bitcoin miners were paid over $15 million worth of the cryptocurrency as incentive to mine blocks and secure the network on Jan. 9. Meanwhile, the total rewards paid across bitcoin (BTC), ethereum (ETH) and other major PoW cryptocurrencies including zcash (ZEC), litecoin (LTC), ethereum classic (ETC), bitcoin cash (BCH) and bitcoin SV (BSV) were just a bit more than $18 million.

Essentially, bitcoin miners were responsible for nearly 83 percent of the total mining rewards paid across major PoW blockchains. 

Since mid-2017, bitcoin miners’ salary share has increased by 250 percent, while that of ether, the second-largest cryptocurrency, has dropped significantly. 

Proof-of-work is a consensus algorithm for blockchain networks where miners find blocks by solving cryptographically hard puzzles. This is in contrast to the proof-of-stake (PoS), where validators lock up the respective cryptocurrency to claim their stake in the ecosystem. 

Strongest coin

The fact that bitcoin miners are drawing significantly higher salaries than their counterparts is not surprising, given bitcoin is the strongest PoW-powered coin with the largest network effect and the longest track record, according to Muneeb Ali, CEO of Blockstack PBC. 

A network effect is the idea that as adoption and integration into a system grows, so does its value – and at an exponential rate rather than at a linear rate. 

Back in 2016, bitcoin expert Trace Mayer mentioned the store of value appeal, security and speculation that bitcoin’s network effect would grow rapidly.

“The cryptocurrency has almost totally captured the store of value narrative, allowing for consolidation around the strongest coin,” Blockstack’s Ali said. 

Further, bitcoin’s network security, as represented by its hash rate, has increased sharply over the years, helping build confidence in the blockchain and establishing a positive feedback loop of security and network effect. At press time, bitcoin’s hash rate is roughly 100,000,000 Terahashes (or 100 exahashes).

Looking forward

Bitcoin’s share of PoW mining could grow even larger in the future as ethereum and other blockchains begin shifting to proof-of-stake, which is less energy-intensive consensus mechanism, said Ali. 

Ethereum is expected to complete the transition from PoW to PoS by 2022. “Its network will be better once ETH 2.0 (post-transition) shows its true value in the global market,” Steve Tsou, Global CEO of RRMine, told CoinDesk.

Another factor that could affect miner’s income and influence bitcoin’s share of PoW mining is the reward halving due in four months. The rewards received for per block mined on bitcoin’s blockchain will be reduced from 12.5 BTC to 6.25 BTC sometime in May. Mining costs will double post halving and that could crowd out weak miners, causing changes between supply and demand.

RRMine’s Tsou said miners’ income will rise if halving creates a supply deficit, pushing prices above mining costs. That could also boost bitcoin’s share of PoW mining – more so, as increased profitability may attract miners from other chains.

“The most important thing is that the miners control the cost, which completely determines if the miners can profit from it,” Tsou said. 

However, if prices drop sharply, controlling cost will be a challenge and miners may exit, possibly leading to a drop in bitcoin’s share of PoW mining. 

Disclosure Read More

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.


Credit: Source link

Share76Tweet47

Related Posts

CoinDesk’s Statement on Coronavirus and Blockchain Week NYC

CoinDesk Takes Consensus 2020 Virtual

March 13, 2020
0

With the COVID-19 pandemic worsening throughout the world, CoinDesk is taking immediate action on Consensus 2020. As the organizers of...

US Charges Dutch National With Running Crypto-Funded Child Porn Site

US Charges Dutch National With Running Crypto-Funded Child Porn Site

March 12, 2020
0

U.S. prosecutors indicated a Dutch national Thursday for allegedly spearheading a rape and child pornography website that’s made over $1.6...

Down 26%: Bitcoin Sees Worst Sell-Off in 7 Years as Coronavirus Spurs Flight to Safety

Down 26%: Bitcoin Sees Worst Sell-Off in 7 Years as Coronavirus Spurs Flight to Safety

March 12, 2020
0

Bitcoin (BTC) suffered its biggest drop in seven years, as fears over the spreading coronavirus triggered a new wave of...

US Homeland Security Charges LocalBitcoins Seller With Money Laundering

US Homeland Security Charges LocalBitcoins Seller With Money Laundering

March 11, 2020
0

Washington state resident Kenneth Warren Rhule has been charged with laundering over $140,000 in bitcoin after agents with Homeland Security...

New York Crypto Companies Move to ‘Work From Home’ in Face of Rising COVID-19 Threat

New York Crypto Companies Move to ‘Work From Home’ in Face of Rising COVID-19 Threat

March 11, 2020
0

Kadena CEO Will Martino had already been considering abandoning his blockchain development company’s Brooklyn HQ before coronavirus came to New...

Load More
  • Trending
  • Comments
  • Latest
Volcker Might Have Said Yes to a Digital Dollar – If He Knew What It Was

Volcker Might Have Said Yes to a Digital Dollar – If He Knew What It Was

December 12, 2019
Square Crypto Adds 3 New Members to Complete Inaugural Dev Team

Square Crypto Adds 3 New Members to Complete Inaugural Dev Team

September 20, 2019

70% Stock Market Plunge Could Be Brewing: Analyst

October 5, 2020
Ripple’s Brad Garlinghouse Hints Firm May Seek IPO Within 12 Months

Ripple’s Brad Garlinghouse Hints Firm May Seek IPO Within 12 Months

January 24, 2020
Ethereum Analyst Sees Record High This Week as Price Climbs 60%

Ethereum Analyst Sees Record High This Week as Price Climbs 60%

January 4, 2021
Best Tips On CryptoTrading And Mistakes To Avoid While Trading Cryptocurrencies

Best Tips On CryptoTrading And Mistakes To Avoid While Trading Cryptocurrencies

December 24, 2020
Analyst Expects Ethereum Correction as Key Indicator Peaks

Analyst Expects Ethereum Correction as Key Indicator Peaks

December 22, 2020
Bullish Argument for Ethereum Rapidly Losing Steam as $570 Is Lost

Bullish Argument for Ethereum Rapidly Losing Steam as $570 Is Lost

December 9, 2020
ModernCryptos

MdernCryptos.com is an online news portal which aims to provide latest crypto news direct from market with real time updates!

Topics to Cover

  • Bitcoin
  • Blockchain
  • Business
  • Crypto News
  • Ethereum
  • Market
  • Regulation

Whats New Here!

  • Ethereum Analyst Sees Record High This Week as Price Climbs 60%
  • Best Tips On CryptoTrading And Mistakes To Avoid While Trading Cryptocurrencies
  • Analyst Expects Ethereum Correction as Key Indicator Peaks

Subscribe to get more!

Simply subscribe to our newsletters and we will be in touch. Don't worry, we won't spam you
  • Contact Us
  • Privacy & Policy

© 2019 ModernCryptos.com - all rights reserved

No Result
View All Result
  • Home
  • Live Updates
    • Cryptocurrency Prices
    • Live ICO
    • Live Exchange
  • Crypto News
    • Bitcoin
    • Ethereum
  • Blockchain
  • Regulation
  • Business
  • Market

© 2019 ModernCryptos.com - all rights reserved

  • bitcoinBitcoin(BTC)$13,064.880.65%
  • ethereumEthereum(ETH)$406.27-0.44%
  • tetherTether(USDT)$1.000.01%
  • rippleXRP(XRP)$0.2545180.61%
  • bitcoin-cashBitcoin Cash(BCH)$269.26-0.33%
  • Binance CoinBinance Coin(BNB)$30.841.81%
  • litecoinLitecoin(LTC)$58.161.61%
  • cardanoCardano(ADA)$0.105520-1.66%
  • eosEOS(EOS)$2.713.04%
  • moneroMonero(XMR)$137.143.72%
  • tronTRON(TRX)$0.0272551.31%
  • stellarStellar(XLM)$0.083631-0.21%
  • tezosTezos(XTZ)$2.15-2.08%
  • CosmosCosmos(ATOM)$5.28-3.93%
  • LEO TokenLEO Token(LEO)$1.261.17%
  • iotaIOTA(MIOTA)$0.279914-0.06%
  • dashDash(DASH)$72.30-1.09%