Why Bitcoin miners' commission income has plummeted by half.
Over the past month, Bitcoin network fees have fallen to their lowest levels in a year. According to The Block's analytics dashboard, miners currently earn around $300,000 per day in fees, reports RBC Crypto.
At the beginning of January, this figure was around $600,000, and at its peak in the first half of the year, it rose to $900,000. Until the beginning of autumn, daily commissions did not fall below $340,000.
Bitcoin miners' income consists of two components: a reward for adding a new block to the blockchain and network fees for transactions. The block reward is halved every four years as a result of halvings.
Currently, the reward stands at 3.125 BTC ($285,000) per block until spring 2028, with each block mined every 10 minutes. By 2140, due to constant halvings, the reward is expected to approach zero. And the closer we get to that date, the more miners will rely on fees, which in turn depend on network activity.
As of November 19, miners received a total of $42.38 million. Of this, approximately $42.06 million was earned from block rewards and $313,000 in fees, which is less than 1% of total revenue.
In addition to the decline in miner revenues, the drop in fees points to another important factor: a decline in the actual use of Bitcoin. Fees are directly related to network activity, and their sharp decline indicates a noticeable decline in the number of transactions. This suggests that Bitcoin use has decreased.
The Bitcoin blockchain primarily serves as a network for money transfers, not as a platform for various consumer applications. This further limits the potential for commission earnings and raises questions about the long-term economic viability of mining.
Last week, Fred Thiel, CEO of MARA Holdings, the largest American miner, stated that the traditional Bitcoin mining model will become unprofitable in the next few years unless the leading cryptocurrency appreciates at least 50% annually and network fees remain stagnant. Thiel believes that those miners who can generate their own electricity and diversify their business into AI will survive.
Источник: cryptocurrency.tech
