Bitcoin Miners Earned Profit of $184 Million in Q2 2023, More Than Across All Of 2022

Bitcoin miners earned a profit of $184 million in Q2 2023, more than over all of 2022. The profit of $184 million represents an increase of more than 270% compared to Q1 2023. It is the first quarter to surpass the $100 million mark since Q2 2022.

According to Coin Metrics, miners' profits are higher than in the previous five quarters. The market capitalization of BRC-20 tokens, which was introduced in March, rose to almost $240 million. Users must send a transaction with a commission to mint BRC-20 tokens, and their request will be processed by the Bitcoin network and added to the next block of transactions.

Remarkably, Coin Metrics wrote: “…in a dynamic first half of 2023, digital asset markets started the year on a strong footing, with bitcoin (BTC) and ether (ETH) surging 83% and 55%, respectively, buoyed by a risk-on sentiment in January. On the other hand, Q2 exhibited a more subdued performance, with BTC and ETH posting gains of 7% and 4%. In light of increased regulatory scrutiny from the SEC and the Federal Reserve's ongoing battle against inflation, a spectrum of events over the quarter has influenced market sentiment, adding complexity to the evolving relationship between traditional and digital asset markets.”

Users have become increasingly willing to pay for transactions in exchange for speed, as the hype around BRC-20 tokens has gained momentum. The jump in fees was associated with the recent surge in Bitcoin prices, underpinning high revenues and the emergence of BRC-20, Bitcoin’s Ordinals Protocol. The amount of money that miners receive from transaction fees is still significant, especially compared to previous quarters, even though the payouts associated with transaction fees have decreased.