Recently, the competition for transaction fees between Bitcoin and Ethereum is drawing attention. Bitcoin miners made $9.98 million and $5.91 million in revenue on April 15th and 16th, respectively. This means $3.5 million and $1.1 million more income than Ethereum stakers. However, Ethereum’s average weekly transaction fee, $8.55 million, slightly outweighed Bitcoin’s $7.57 million.
Bitcoin Halving Event Is Approaching
Bitcoin transaction fees vary depending on the size of the transaction and block demand. The upcoming Bitcoin halving event will reduce mining rewards from 6.25 Bitcoin to 3.125 Bitcoin. Currently, approximately 900 Bitcoins are mined daily, and the $7.47 million transaction fee earned on April 17th made up 11.5% of total block rewards.
After the halving, it is expected that the proportion of income from transaction fees will increase. Miners will become more dependent on transaction fees and Bitcoin price increases to balance the decrease in income.
New Developments in the Bitcoin Ecosystem
In January 2023, Ordinal inscription, a space similar to NFT in the Bitcoin ecosystem, was introduced, allowing miners to generate more income from transaction fees. Furthermore, when a new Bitcoin token standard called Runes was introduced, it will create a new stream of income for miners. Runes aims to facilitate NFT and token creation in the Bitcoin ecosystem and competes with Ordinals.
Useful Information for Readers
The Bitcoin halving event could change revenue sources for miners and increase the importance of transaction fees.
Recent innovations such as Runes and Ordinals diversify the ways to generate income in the Bitcoin ecosystem.
Competition in transaction fees between Bitcoin and Ethereum could affect investors’ strategies.
In conclusion, changes in the Bitcoin ecosystem have significant effects on both miners and investors. The halving event and new token standards can significantly impact the structure and revenue models of the ecosystem.
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