Bitcoin Mining Community Records Highest Annual Revenue Record, IDR 690 Billion

Illustration of Bitcoin acquisition. (photo; dock. pexels)

JAKARTA - The Bitcoin mining community recorded its highest annual revenue record on November 12 after collecting more than 44 million US dollars (IDR 690 billion) from block rewards and transaction fees.

Revenue from Bitcoin mining primarily comes from rewards for confirming Bitcoin transactions and creating new blocks using sophisticated computer devices known as mining rigs. Currently, miners receive 6.25 BTC for each successful block creation, plus transaction fees.

On November 12, daily revenue from Bitcoin mining reached more than 44 million US dollars for the first time in 2023, a figure last seen in April 2022, according to data from blockchain.com.

Between April 2022 and November 2023, several factors led to a decline in Bitcoin miner revenues globally. These include a prolonged bear market, negative investor sentiment towards fraud, and the collapse of the ecosystem, as well as unfriendly regulations that hinder investors from transacting Bitcoin freely.

However, 2023 witnessed a complete reversal of the trend as crypto entrepreneurs took charge of the situation and helped regain investor confidence. As a result, with increasing market prices and growing interest among the public, mining communities experience increased income throughout the year.

Bitcoin mining company Marathon Digital Holdings reported a 670% year-on-year jump in revenue in the third quarter of 2023 amid a nearly fivefold increase in Bitcoin production.

Along with Bitcoin mining companies and individual miners, many countries also actively participate in securing the Bitcoin network through mining.

Recently, Cointelegraph reported that the landlocked Asian country, Bhutan, has been actively mining Bitcoin with hydropower since the price of BTC hit 5,000 US dollars in April 2019. The kingdom is reportedly exploring partnerships to expand its mining operations.

Specifically, Bhutan is negotiating with Nasdaq-listed mining company Bitdeer to acquire 100 megawatts of power for its Bitcoin mining data center in Bhutan. This partnership will increase Bitdeer's mining capacity by approximately 12 percent.