2024

Bitcoin

April

Rewards

<h4><strong>According to insights from ViaBTC via <a href="https://cointelegraph.com/news/bitcoin-ordinals-runes-brc20s-mitigating-halving-effect-viabtc" target="_blank" rel="noopener">Cointelegraph</a>, these applications could be pivotal in maintaining miner incentives. </strong></h4> 
<p>As block rewards diminish over time, their role becomes increasingly crucial. Let’s discover more about this important news for Bitcoin mining.</p> 
<h5><strong>Key Applications Bolster Miner Incentives as Bitcoin Rewards Decline</strong></h5> 
<p>Bitcoin’s block subsidy halves approximately every four years, or every 210,000 blocks. This process is designed to gradually reduce the issuance of new bitcoins until the maximum supply of 21 million is reached. This halving significantly impacts miners’ revenues as the reward for mining new blocks decreases.</p> 
<p>Historically, miners have depended on transaction fees to supplement their income, particularly as each <a href="https://www.altcoinbuzz.io/?s=bitcoin+halving" target="_blank" rel="noopener">Bitcoin halving</a> reduces their block rewards. Before the launch of the Ordinals protocol in January 2023, these fees primarily came from standard peer-to-peer transactions.</p> 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 <p lang="en" dir="ltr"><a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> Miner Revenues Explode Thanks to Runes: Should You Load Up on Miners?</p> 
 <p><img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f447.png" alt="👇" class="wp-smiley" style="height: 1em; max-height: 1em;">1-12) Bitcoin miner revenues have exploded with the launch of Runes, a new fungible token standard created by creative organelles. Runes allows people to inscribe arbitrary data on Bitcoin-like art.… <a href="https://t.co/cj1VUuHUq7">pic.twitter.com/cj1VUuHUq7</a></p> 
 <p>— 10x Research (@10x_Research) <a href="https://twitter.com/10x_Research/status/1782947649437806951?ref_src=twsrc%5Etfw">April 24, 2024</a></p>
</blockquote> 
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p> 
<p>However, new Bitcoin apps like <a href="https://www.altcoinbuzz.io/?s=ordinals" target="_blank" rel="noopener">Ordinals</a>, enabling data inscription on satoshis, are reshaping miner economics. The new <a href="https://www.altcoinbuzz.io/?s=runes" target="_blank" rel="noopener">Runes</a> token standard further contributes to this change. These applications increase the demand for block space due to their data-intensive nature, consequently driving up transaction fees.</p> 
<h5><strong>More About Runes/Ordinals’ Effect on Bitcoin Mining</strong></h5> 
<p>ViaBTC’s experience provides a concrete example of how these developments can benefit miners. On April 20, ViaBTC mined the 840,000th block, also known as the halving block, where the block subsidy was reduced to 3.125 BTC. This block featured a massive 37.6 BTC in transaction fees, totaling 40.7 BTC or about $2.4 million. This record-setting fee resulted from a surge in activity by enthusiasts of memecoins and nonfungible tokens. They were eager to use the Runes token standard to inscribe “<a href="https://www.altcoinbuzz.io/?s=rare+satoshi" target="_blank" rel="noopener">rare satoshis</a>” and fungible tokens.</p> 
<p>This phenomenon illustrates how developments at the application layer of Bitcoin. Not only enhances the network’s utility but also creates new revenue streams for miners. As ViaBTC noted, such innovations in blockchain technology could significantly mitigate the long-term impact of decreasing block rewards by increasing network activity and, by extension, transaction fees.</p> 
<p><a href="https://www.patreon.com/altcoinbuzz" target="_blank" rel="noopener"><img decoding="async" class="aligncenter wp-image-124240" src="https://www.altcoinbuzz.io/wp-content/uploads/2023/09/image-7-1-1-300x37.jpg" sizes="(max-width: 714px) 100vw, 714px" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2023/09/image-7-1-1-300x37.jpg 300w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/image-7-1-1-1024x127.jpg 1024w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/image-7-1-1-768x95.jpg 768w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/image-7-1-1-696x86.jpg 696w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/image-7-1-1-1068x132.jpg 1068w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/image-7-1-1.jpg 1197w" alt="Coins" width="714" height="88"></a></p> 
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<h6><strong>Disclaimer</strong></h6> 
<p>The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.</p> 
<p>The post <a href="https://www.altcoinbuzz.io/cryptocurrency-news/ordinals-runes-drive-bitcoin-mining-revenue-after-halving/">Ordinals &amp; Runes Drive Bitcoin Mining Revenue After Halving</a> appeared first on <a href="https://www.altcoinbuzz.io">Altcoin Buzz</a>.</p>

Ordinals & Runes Drive Bitcoin Mining Revenue After Halving

Altcoin Buzz

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