Bitcoin

Impact

when

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Bitcoin miners are feeling the effects of reduced transaction fees and increased competition.</li>
 <li>Despite a decrease in transaction fees, Bitcoin’s hash rate remains historically high.</li>
</ul>
<p>Bitcoin miners are beginning to feel the effects of a changing market.</p>
<p>The hype around Runes, a new token standard, had previously pushed both the number and value of transactions on the <a href="https://crypto.ro/en/cryptocurrencies/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin</a> network to record highs.</p>
<h2 id="the-impact-of-runes">The Impact of Runes</h2>
<p>However, this surge in activity could not be sustained indefinitely. While approximately half of Bitcoin transactions are still linked to Runes, the total number of transactions has significantly decreased.</p>
<p>The fees associated with the initial excitement around Runes appeared to reach unsustainable levels. The average transaction fee on the network spiked to $40, a cost many users found prohibitive.</p>
<h2 id="bitcoin-miners-struggling">Bitcoin Miners Struggling</h2>
<p>The high fees were a boon for Bitcoin miners, who were facing a 50% reduction in the block subsidy following the halving.</p>
<p>The surge in fees coincided with the launch of Runes, helping to offset the impact of the reduced 3.125 BTC reward. Over $80 million was paid in transaction fees the day after the halving, bolstering miner revenue.</p>
<p>However, as fees have returned to normal levels, with total miner revenue from transaction costs falling below $5 million, miners are starting to feel the strain.</p>
<p>Despite the reduced revenue, Bitcoin’s hash rate remains high. The overall hash rate has been on an upward trend since Bitcoin’s inception, with only a minor dip during the China crackdown.</p>
<p>Unless miners begin to exit the market, it’s unlikely we’ll see the levels of miner revenue seen when there was less competition to mine the next Bitcoin block.</p>

Bitcoin Mining Industry Experiences Economic Strain

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