Bitcoin mining profitability increased by 8% due to commissions

The average commissions in the Bitcoin (BTC) blockchain continued the upward trend.

According to the analytical data of theby Coin Metrics, revenue of bitcoin minersincreased by 8% in October compared to September. Its estimated value is $ 353 million, assuming that miners would sell all the bitcoins they mine at once.

It is noteworthy that the amount of commissions thatminers received by the end of October, amounted to $ 42.9 million. This is 12% of the estimated earnings of miners for the specified month, which is the highest value since January 2018. Average transaction fees began to skyrocket in the second half of October, reaching $ 13.45 by early November.

Such an increase in the commission rate is due to the fact that inSichuan Province (China) ended the rainy season, when the cost of 1 kWh was very low thanks to the generation of energy from the operation of hydroelectric power plants. However, the traditional change of weather has led to the fact that miners in this province, which accounts for about half of all mining activity in China, began to move their machines to other regions of the Middle Kingdom.

In turn, such a temporary shutdownmining equipment caused a decrease in hashrate in the last week of October, from 146 to 113 Eh/s. However, if we talk about the size of commissions, then their average value began to gradually show an upward trend, starting in April of this year, in anticipation of the halving in the Bitcoin blockchain that took place in May.

October itself turned out to be very positivemonth for bitcoin from a market point of view. First, at the end of the third quarter, the digital asset grew in price by 26%. Secondly, the fact that Bitcoin ended October at $ 13,821 thousand was the best monthly total in the entire history of this asset.

Bitcoin's closing price in Oct was within dollars of the highest monthly close EVER. $BTC
Why do monthly prices matter?
B/C month-end asset valuation is how institutional participants appraise their holdings & investments. pic.twitter.com/F1WYQYZwG2

- Peter Brandt (@PeterLBrandt) November 1, 2020

As trader Peter Brandt noted, “It is very important thatthat the month ended on such a positive note - this is important, first of all, for institutional investors, who traditionally look at the end of the month and at the corresponding prices of financial instruments with which they operate. "

Regular mining — the best Bitcoin mining option for 2020

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Cloud mining is a model of earningcryptocurrency, which creates groups (mining pools), with one goal: to generate more income, in comparison with conventional distributed mining, due to the management of equipment by a contractor who solves all issues related to technical and software components.

In this case, the user simply paysthe work of the rented equipment for a certain period of time. The cloud mining provider for the payment received must ensure the round-the-clock operation of its equipment with the specified capacity, ensuring that the earned cryptocurrency is credited to the wallet of the tenant who paid for the cloud mining services.

Cloud mining setup does not requirea productive computer or knowledge in the field of blockchain and cryptocurrencies in general. Setting up in this case consists in going through the standard registration procedure on the pool, depositing money (usually ordinary money or bitcoins) and choosing a tariff plan.

The user then specifies the address (personalwallet), where the mined cryptocurrency, withdrawal limits and other parameters will be displayed. Cloud mining starts after balance replenishment. After that, you need to periodically check the balance and funds received from the cloud provider.

Rating of the TOP 5 best cloud mining sites, with current estimates for 2020

Service	Rating	Detailed overview
IQ Mining (Editor's Choice!)	9.5	Read the review
ECOS	7.8	Read the review
YoBit VMining	7.2	Read the review
BitDeer	7.1	Read the review
HashFlare	6.8	Read the review

The criteria by which the score is given in our rating:

Profitability and profitability– we calculate the payback period, clarify the reality of mining.
Prices and commissions– we take into account the validity of tariff plans and compare them with competitors.
Deposit / withdrawal, discounts, reliability– we analyze reviews, test the correctness of accruals and withdrawals.
Convenience of the platform and site– we evaluate the functionality, errors and failures when working with the service.
Features of the company– unique services and useful services, period of work on the market.
final grade– the average number of points for all indicators determines the place in the ranking.