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Bitcoin Miners Face Lower Earnings Amid Falling Transaction Fees

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

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