Traders were less fortunate: miners earned a record profit amid another bitcoin record

The past week has brought a lot of pain to retail traders, whose combined losses amounted to almost $2 billion. On the contrary, there are also those who made excellent money during the next growth of the first cryptocurrency. These are the miners who have set a kind of record profit for all time over the past week.

The total income of miners amounted to $354 million due to the constant growth of bitcoin and the retention of high indicators of the asset value. Ergo, the record set back in 2017 was broken, and cryptocurrency mining companies are optimistic about the future, increasing their turnover. The calculation of the miners' income was calculated based on the fact that the received bitcoins are immediately sold. About 15% of the total revenue is commission. According to representatives of mining companies, January and February 2021 were record-breaking in terms of revenue, due to the fact that the cryptocurrency market was experiencing a real renaissance. Moreover, all of the company's profits are reinvested back into the business, which has a positive impact on the value of digital assets.

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The rise in the price of bitcoin and other cryptocurrencies has created an increased demand for mining equipment. Large companies have already sold off the annual stocks of the first digital asset and were forced to buy a new one, but with a mark-up. Given the situation, it can be said that the growth of the cryptocurrency market has served as an impetus for the development of related areas of activity. Due to the increased demand for bitcoin, more equipment appeared, respectively, the production capacity increased, the number of coins that can later be reinvested. This factor is practically not considered when the components of the constant growth of the cryptocurrency market and its retention in high positions are analyzed.

A large flow of investment from large companies has created an increased demand for bitcoin and other assets, which, in turn, contributes to the growth of the overall market capitalization and the emergence of a new springboard that can become a stronghold of digital assets during price spikes. To sum it up, the mining market is developing in parallel with the crypto market and to a certain extent contributes to increasing its capitalization through reinvestment.

The material has been provided by InstaForex Company - www.instaforex.com

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