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- As Elmandjra goes on to state, this is more than 80% of the combined salaries of other major POW cryptocurrency miners.
- Ethereum is also moving closer to shifting to a proof-of-stake (POS) system where mining power will determine by the miner’s stake in the cryptocurrency.
Yassine Elmandjra, a cryptocurrency analyst from ARK Invest, took it to Twitter to reveal that bitcoin miners made a significantly larger salary than other cryptocurrency miners due to incentives that they receive for maintaining network security.
As pointed out in the graph shown by Elmandjra, the salary that bitcoin miners receive transcends that of any other proof-of-work (POW) cryptocurrency mining salaries.
The estimated incentive that bitcoin miners receive per day for maintaining the blockchain security is more than $15 million. As Elmandjra goes on to state, this is more than 80% of the combined salaries of other major POW cryptocurrency miners.
Ethereum exceeded Bitcoin in terms of mining rewards back in May 2017. However, as Ethereum shares started to decline, it’s market value dropped too resulting in lesser mining rewards.
Since the mid of 2017, bitcoin miners’ salaries have seen an approximate 250% boost and are getting closer and closer to the reward levels that it had pre-Ethereum.
Ethereum is also moving closer to shifting to a proof-of-stake (POS) system where mining power will determine by the miner’s stake in the cryptocurrency. In this case, the more Ethereum the miner owns, the more mining power possessed.
The analysis mentioned above will also have to stand the test of time as we move closer to the bitcoin halving event, which set to happen during May 2020.
Bitcoin Halving is the protocol via which the rewards offered to miners halved when 210,000 blocks have mined, which is approximately every four years.
When bitcoin initially released into circulation, mining a single block would offer a miner 50 BTC, and three halvings later, the 2020 halving will see the BTC reward to a miner reach 6.25 BTC per block. As the rewards halve, we will have to know how this will affect bitcoin’s overall miner salary dominance in the cryptocurrency market.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
