Unveiling 2019 Bitcoin On-Chain Data: Global miners earned approximately $5.2 billion in total revenue throughout the year, with Coinbase emerging as the "Cash King".

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Unveiling 2019 Bitcoin On-Chain Data: Global miners earned approximately $5.2 billion in total revenue throughout the year, with Coinbase emerging as the "Cash King".

"Bitcoin has been the best-performing asset of the past decade." Both Merrill Lynch and Bloomberg have reached this conclusion.

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If we look at the price increase, it is indeed true. Bitcoin went from $1 to nearly $20,000 in just 6 years, but the other side that cannot be ignored is that Bitcoin dropped from $20,000 to $3,000 in just 1 year. Bitcoin's roller-coaster market performance was also seen in 2019.
Between the ups and downs of the coin price, what stories have ordinary users, "whales," exchanges, and miners each played out? PAData, in collaboration with Chain.info, a one-stop data service platform focusing on blockchain transactions, has reviewed the Bitcoin on-chain data in 2019 and released the "2019 Bitcoin on-chain data list."
Previously, we mentioned the annual significant data that in 2019, Bitcoin on-chain transactions exceeded 100 million, with a global actual market size of nearly $4 trillion, equivalent to about 1/4 of the total A-share trading volume.
This article is the second part, showcasing the changes in exchanges and miners in 2019.
Global miners' average monthly total income is $461 million, with transaction fees accounting for only about 2.8%
In 2019, the total transaction fees on the Bitcoin blockchain reached $156 million, with $35.22 million in June and $33.18 million in May, accounting for 43.84% of the total transaction fees for those two months. However, in January, the total transaction fees were as low as $2.372 million, showing significant monthly differences in transaction fees. Looking at the median, which is closer to the average level, the total monthly on-chain transaction fees for the year were around $8.53 million.
Looking at the month-on-month changes in daily transaction fees, the range is wide, indicating significant fluctuations in daily total transaction fees. Total transaction fees are the sum of fees for each transaction, which for a block means the first transaction in each block (coinbase), and it is not directly related to the amount and volume of transactions in a block, but rather to the number of transactions and the network congestion. Larger daily fluctuations in transaction fees may also imply larger fluctuations in daily transaction volume or unstable network operation status.
Transaction fees are a component of miner income, with another part coming from block rewards. In 2019, for each block mined, the system rewarded miners with 12.5 bitcoins.
Miner income fluctuates in line with coin price fluctuations. According to statistics, global miners' total income for the year was about $5.209 billion, with a monthly average income of about $461 million (median). July was the month with the highest miner income, with global miners' total income reaching $657 million, and the highest income months of July, August, and September were also the three months with the highest coin prices of the year. February was the month with the lowest miner income, with global miners' total income only $196 million.
Currently, miner income still mainly relies on system rewards, with transaction fees averaging only about 2.8% of miner income. However, as Bitcoin network rewards halve every four years, transaction fees will gradually become the main source of miner income. If the halving does not lead to an increase in coin prices, the pressure on miner income will increase, potentially leading to an increase in transaction costs, which will affect the operation of the Bitcoin network.
Coinbase saw the most influx of stock funds throughout the year, with frequent capital flows among the top three domestic exchanges
Although the global Bitcoin market size is close to $4 trillion, it is still a niche market, especially in recent years when Bitcoin hasn't seen significant breakthroughs in user numbers. Stock game has become the current situation of the Bitcoin trading market.
Chain.Info has established a global exchange wallet database containing over 10 million address labels using machine learning algorithms. As of January 14th, Coinbase had the largest on-chain BTC balance among exchanges, with approximately 981,300 bitcoins, followed by Huobi and Binance, with on-chain balances of 336,700 bitcoins and 247,400 bitcoins respectively. Bitfinex, Bitstamp, Kraken, Bittrex, Bitflyer, OKEx, and Coincheck ranked 4th to 10th, with on-chain balances all exceeding 30,000 bitcoins.
Based on the statistics of the total inflow and outflow of funds from exchanges throughout the year, in 2019, Binance had the most Bitcoin flowing out to other exchanges, reaching about 256,900, followed by Huobi, with about 243,400 bitcoins flowing out to other exchanges, and OKEx, with about 180,300 bitcoins flowing out to other exchanges. Coinbase only had 31,900 bitcoins flowing out, and Kraken had only 19,100 bitcoins flowing out.
Looking at the Bitcoin inflows from other exchanges, OKEx received the most bitcoins from other exchanges, reaching 256,900, followed by Binance, which received 173,200, and Huobi and Coinbase received 113,900 and 112,600 bitcoins respectively.

If we consider the difference between the Bitcoin flowing out to other exchanges and the Bitcoin received from other exchanges as the funds exchanges gained in the stock market throughout the year, then according to calculations, Huobi lost 129,500 bitcoins throughout the year in the stock market, while Binance, also one of the top three domestic exchanges, lost 83,700 bitcoins. Additionally, Upbit also lost 30,800 bitcoins.
On the other hand, Coinbase emerged as the biggest winner in the stock market, with a net inflow of stock funds of 80,700 bitcoins throughout 2019, followed by Bittrex and Bitstamp, both with net inflows of stock funds exceeding 30,000 bitcoins for the year. Among the top three domestic exchanges, only OKEx had a net inflow of stock funds, but only 18,930 bitcoins.
PAData visualized the transfers between exchanges throughout the year as a network, with arrows indicating the direction of transfers, and the thickness of the lines representing the amount of transfers. The position of exchanges in the funding network [1] closer to the center signifies a more central position in the entire network relationship, while those closer to the periphery indicate a more marginal position in the entire network relationship and less active interaction with other exchanges.
Although the performance of the top three domestic exchanges in the stock market was mediocre, they are still the center of the Bitcoin trading network, with frequent large fund flows among them. Throughout the year, Huobi made 862 large transfers to OKEx, with a total transfer amount of 97,900 bitcoins, and 630 large transfers to Binance, with a total transfer amount exceeding 91,800 bitcoins. OKEx made 590 large transfers to Huobi, with a total transfer amount of about 59,800 bitcoins, and Binance made 557 large transfers to OKEx, with a total transfer amount of about 62,100 bitcoins. These four Bitcoin fund flows were the most significant in terms of the number of large transfers and the amount transferred between exchanges in 2019.
In addition, Upbit transferred a considerable amount of bitcoins to Bittrex, making 445 large transfers throughout the year, with a total transfer amount of 39,900 bitcoins. In 2019, the exchange that "harvested" the most stock funds was Coinbase, with Binance, Bitstamp, OKEX, and Huobi all "contributing" over 10,000 bitcoins, with Binance contributing the most, accumulating over 31,900 bitcoins.
Another noteworthy aspect is the Bitcoin's geographical flow behind the exchange's fund flow. According to statistics, in 2019, the total amount of bitcoins flowing from Binance to Bitstamp, Bitfinex, and Coinbase reached 106,800 bitcoins, accounting for 41.57% of the total stock funds that Binance "lost." If we include the funds flowing from Binance to Bitflyer, Bithumb, Bittrex, Coincheck, Kraken, Poloniex, and Upbit, the total amount reaches 159,000 bitcoins, accounting for 61.90% of the total amount flowing from Binance to exchanges. The total amount of bitcoins flowing from Huobi to these exchanges was about 50,300 bitcoins, accounting for 20.67% of the total amount flowing to exchanges, and the total amount of bitcoins flowing from OKEx to these exchanges was about 55,900 bitcoins, accounting for 31.05% of the total amount flowing to exchanges. Although Huobi and Binance both "lost" in the stock market in 2019, the funds flowing out from Huobi were mainly absorbed by the other two domestic exchanges, Binance and OKEx, while the funds flowing out from Binance were mostly absorbed by foreign exchanges.
Data Explanation:
[1] Fruchterman-Reingold algorithm was used here to layout the social network relationship.
This article is from our partner PANEWS

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