Miners relying on Bitcoin fees after halving

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Tokeneo
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1 min reading

After the third halving week, the miners rely more on Bitcoin transaction fees because the block prizes were halved, what mean that miners' ravenue is much smaller than before.

miners lost 61% of ravenue

Miners Lost 61% of Their Revenues

On 10 May, the miners received awards in the amount of 2188 BTC, on 12 May, the miners' earnings dropped to 852 BTC, a decrease of 61%. Halving bitcoin forced some miners to stop digging, which in turn reduced the hashrate network. This in turn led to an increase in the block interval, which means fewer blocks processed per unit of time, reducing the number of block prizes available to miners.

Miner Revenue and Revenue From FeesMiner Revenue and Revenue From Fees. Source: Glassnode 

Negative Effect of Halving

Halving had a negative impact on miners, and the only salvation for them is fact that network congestion has led to a sharp increase in transaction fee costs. Today as much as 17% of miners' ravenue are transaction fees, and it's the highest percentage since January 2018.

Bitcoin Transaction Fees. Source: blockchain.com 

Revenues of miners in US dollars fell by 62% from $19.25 million to $7.82 million in 3 days from 9-12 May, a fall of 62%. 

Miners Revenue. Source: blockchain.comIt is possible that as Bitcoin grows, and each subsequent halving will reduce the miners' reward until bitcoins can no longer be extracted, they will have to rely more on transaction fees.



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