Bitcoin

ORDI

<h2 id="quick-take">Quick Take</h2>
<ul>
<li>Bitcoin fees have started to explode due to the emergence of Ordinals and BRC-20 tokens.</li>
<li>Taproot made it easier for &#8220;Ordinals&#8221; to enter the Bitcoin blockchain.</li>
<li>The mempool is processing as designed, but as a result, the fees are adjusting much higher.</li>
<li>This results in one of if not the highest recorded transaction fees ever.</li>
<li>This has potentially sorted out Bitcoins security model; when the block reward diminishes, will the miners continue to mine? Would they be incentivized enough?</li>
<li>Miners, for the first time since 2017, are getting paid more than the block reward; in block 788695, miners were paid 6.701 ($193,075) in fees. At the same time, the block reward was 6.25 BTC.</li>
<li>However, if you use the Bitcoin blockchain for payments, your fees have gone up, but this is the work of a free capital market. If people want to continue minting tokens via “ordinals,” they hope to sell for more than the cost of mint.</li>
<li>For historical context, 31.7% of miner revenue has come from fees over the last 24 hours.</li>
</ul>
<figure id="attachment_323284" aria-describedby="caption-attachment-323284" style="width: 1721px" class="wp-caption aligncenter"><img class="wp-image-323284 size-full" src="https://cryptoslate.com/wp-content/uploads/2023/05/695.png" alt="Blocks: (Source: Mempool.space)" width="1721" height="558" srcset="https://cryptoslate.com/wp-content/uploads/2023/05/695.png 1721w, https://cryptoslate.com/wp-content/uploads/2023/05/695-300x97.png 300w, https://cryptoslate.com/wp-content/uploads/2023/05/695-1024x332.png 1024w, https://cryptoslate.com/wp-content/uploads/2023/05/695-768x249.png 768w, https://cryptoslate.com/wp-content/uploads/2023/05/695-1536x498.png 1536w" sizes="(max-width: 1721px) 100vw, 1721px" /><figcaption id="caption-attachment-323284" class="wp-caption-text">Blocks: (Source: Mempool.space)</figcaption></figure>
<figure id="attachment_323285" aria-describedby="caption-attachment-323285" style="width: 1800px" class="wp-caption aligncenter"><img class="wp-image-323285 size-full" src="https://cryptoslate.com/wp-content/uploads/2023/05/fees-1.png" alt="Fees: (Source: Glassnode)" width="1800" height="1013" srcset="https://cryptoslate.com/wp-content/uploads/2023/05/fees-1.png 1800w, https://cryptoslate.com/wp-content/uploads/2023/05/fees-1-300x169.png 300w, https://cryptoslate.com/wp-content/uploads/2023/05/fees-1-1024x576.png 1024w, https://cryptoslate.com/wp-content/uploads/2023/05/fees-1-768x432.png 768w, https://cryptoslate.com/wp-content/uploads/2023/05/fees-1-1536x864.png 1536w" sizes="(max-width: 1800px) 100vw, 1800px" /><figcaption id="caption-attachment-323285" class="wp-caption-text">Fees: (Source: Glassnode)</figcaption></figure>
<p>The post <a rel="nofollow" href="https://cryptoslate.com/insights/the-new-flippening-bitcoin-fees-surpass-block-reward-for-miners/">The new &#8220;flippening&#8221;: Bitcoin fees surpass block reward for miners</a> appeared first on <a rel="nofollow" href="https://cryptoslate.com">CryptoSlate</a>.</p>

The new “flippening”: Bitcoin fees surpass block reward for miners

Table of Contents

CryptoSlate

Other articles published on May 8, 2023

Key Performing Cryptocurrencies for May 2023

DOJ Investigates Binance over Sanctions Evasion | Short News

China's Supreme Court Pioneers Cryptocurrency Repayment for Debts

After A Month-Long Shutdown, P2P BTC Exchange Paxful is Back Online

xNFTs: What you need to know about Executable Non-Fungible Tokens

BRC-20 tokens approach $1B market cap

Join our free newsletter for daily crypto updates!