Ethereum: miners have never been so rich
Ethereum: miners have never been so rich
[ETHEREUM] Ethereum mining revenues exceeded $ 1 billion in February 2021. An amount never before seen in the history of the second cryptocurrency.
Crypto prices are rising … and so are miners’ incomes. These operators, who are either individuals or companies, validate and secure cryptocurrency transactions. In February 2021, Ethereum miner revenues reached $ 1.37 billion, according to specialist media The Block. An amount never equaled in the history of the second cryptocurrency. Between January and February 2021, these revenues jumped 65.1%. Note that mining revenues consist of transaction fees and rewards for validating a block. As of February 2021, 52.8% ($ 722.8 million) of Ethereum miner income came from transaction fees. Between January and February 2021, transaction fees rose 122.1% to an average of $ 12 (as of this writing). On February 22, you even had to spend about $ 39 to complete a transaction on the network … regardless of the amount.
What is Ethereum?
Ethereum is a blockchain protocol designed by Vitalik Buterin, a Russian-Canadian developer. Blockchain is a technology that allows information to be stored and transmitted transparently, securely and without a central control body. Launched in 2015, Ethereum, the second blockchain in terms of valuation after Bitcoin, allows the development of decentralized applications, called Dapps. It is different from Bitcoin, which is only focused on peer-to-peer payment. Tens of thousands of developers are building applications on Ethereum for the finance, entertainment, cloud and real estate industries. The Ethereum blockchain developer community is also one of the largest and most active in the world.
How does Ethereum work?
The operation of Ethereum is inspired by that of Bitcoin (storage of the history of network transactions) but it is more complex since it allows to build more complex applications. Ethereum makes it possible in particular to create smart contracts, contracts that are executed automatically on the network following predefined conditions. Let’s illustrate this with a concrete case: if a plane is at least 1 hour late, the airline will automatically reimburse 20% of the plane ticket thanks to a smart contract.
Like the Bitcoin blockchain, Ethereum has its own cryptocurrency, ether, also called Ethereum within the community. It is not issued by a bank or other body but by the protocol itself. Ether, like other cryptocurrencies, is put into circulation through mining. The “miners” perform mathematical calculations with their computer hardware for the network to confirm and secure transactions. It should also be noted that Ethereum, like any public blockchain, works with a consensus algorithm to ensure that all network players agree on a single version of the blockchain data at all times.
There is no official Ethereum or Ether value. This indicator is only an average of Ethereum prices (usually in dollars) across all cryptocurrency exchange platforms around the world. There are several sites which use this method, one of the most reliable of which is Messari. How is the price of ether determined? Quite simply by the law of supply and demand. Here is the real-time price of ether in euros and dollars.
How to buy Ethereum?
Before buying Ethereum or Ether, it’s important to keep in mind that, like any risky asset, you shouldn’t invest more than you can afford to lose. To obtain ethers, you must open an account on a crypto-currency exchange platform. In general, it is possible to buy them by card or by bank transfer. In France, there are a handful of players: the Zebitex and Savitar exchanges and the Coinhouse and ZeBitcoin brokers. Coinhouse also has a bureau de change in the 2nd arrondissement of Paris called “Coinhouse Paris Store” (formerly La Maison du bitcoin). But French citizens can buy bitcoins on foreign platforms like the American Coinbase which is available in the French language. Some are more ergonomic than others. Commissions also vary from platform to platform.
It is possible to keep your ethers at the exchange where you made the purchase or in a wallet, a physical or digital electronic wallet. It avoids the risks of hacking to which cryptocurrency platforms can be victims and allows you to control your funds. Wallets are made up of a public key, known to all, which corresponds to an Ethereum address, and a private key, known only to the holder of the wallet. Physical wallets look like USB keys. Two players are competing for the market, the French Ledger and the Czech Trezor. Digital wallets, that is to say software wallets, are accessible on computer and mobile. Some examples: ArcBit, BitGo, Electrum, Mycelium…
Ethereum price history in euros
The price of ether has been listed since its creation in mid-2015. It is most often expressed in dollars or euros but it can also be found in yen or yuan because Asians are fond of cryptocurrencies. The price of ether has seen great variations, like bitcoin and all other cryptocurrencies. It crossed the $ 1,000 mark for the first time in early January 2018, but dropped back below this symbolic bar the following month.