🔴 LIVE: The Secrets of ProPicks AI Success Revealed + November’s List FREEWatch Now

Bitcoin Miners Face Lower Earnings Amid Falling Transaction Fees

EditorVenkatesh Jartarkar
Published 10/04/2023, 09:20 AM
© Reuters.
BTC/USD
-

Bitcoin miners are seeing reduced revenues due to a decline in transaction fees related to ordinals, despite subsidies from the Electric Reliability Council of Texas. This development comes as users consolidate inscriptions and anticipate lower mining rates, as reported on Wednesday.

Udi Wertheimer and Eric Wall, prominent figures in the Bitcoin community, have been advocating for the inclusion of ordinals in Bitcoin's security plan. Their advocacy comes amidst concerns over potential 51% and double-spend attacks, which could undermine the integrity of the cryptocurrency.

The importance of maintaining a consistent demand for Bitcoin's security budget has been highlighted, especially with the impending coinbase halving. This event, which effectively halves the reward for mining new blocks, is seen as a significant threat to miners' profitability.

In addition to Bitcoin, other cryptocurrencies such as Bitcoin Cash, Ethereum Classic, Bitcoin SV, and Bitcoin Gold were also referenced in the discussions. The necessity of filling four megabytes in block space was emphasized, a factor that impacts transaction speeds and costs across these networks.

The situation has also affected inscription investors who are now awaiting lower mining rates. The discussion came with commentary on X (formerly Twitter), although the specifics of this commentary were not detailed.

As Bitcoin ordinals fail to boost miners' revenue as expected, the focus shifts towards finding sustainable solutions that ensure security and profitability in the long term.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.