Cryptocurrency Miners Earn Millions for Nothing?

1 min reading

The latest Diar's analysis has shown that miners of various cryptocurrencies have made tens of millions of dollars without performing a single transaction.

Statistics

The largest proof-of-work blockchain, such as Bitcoin, Ethereum, and Litecoin, recorded profits exceeding 18 billion dollars. On the other hand, Bitcoin Cash earned only one billion. However, if we look at the number of empty blocks processed by these chains, we can draw interesting conclusions. From the beginning of its existence, the BCH miners have processed almost 3300 empty blocks. Bitcoin and Ethereum have fewer, probably because of the fact, that they are the most popular proof-of-work blockchains. According to Diar, ETH has the fewest of them. Nevertheless, in 2017 they were paid nearly $ 65 million. This may lead to curious observations. It can be assumed, that Diar suggests that cryptocurrency miners earn big money for nothing. It is difficult to express this clearly as they are undoubtedly investing their resources in securing a given network. More losses is recorded when there are too few transactions.

Doubts about costs

In order to be effective, blockchain should be running constantly. The question then arises: should the empty blocks be of the same price as the full ones? The nature of cryptocurrencies causes such habits to create situations where there are less and less coins available. When taking into account the cost of extraction, commissions are still negotiable and there is no certainty that it will ever be compensated.

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