2023-09-27 15:33:04
This year’s big bangs were bitcoin NFTs and engravings called Bitcoin Ordinals. In the first half of the year, these seriously pushed up the number of transactions on the Bitcoin chain. But they also had a very positive impact on mining revenues due to increased transaction fees. But now darker clouds are approaching. Not only has interest in Bitcoin Ordinals waned, but the halving of bitcoin will also have a major impact on mining revenue. Bitcoin Miners Need BTC Price Rise Now On September 26, Glassnode published an analysis that looked at whether mining still dominates transactions over cash flows. The engravings that appeared in February 2023 started to dominate the mempool quite quickly and they started to fill the blocks. However, Glassnode’s analysis shows that the number of pending transactions in the meme pool has spiked since May. However, most of these unconfirmed transactions do not have much data. Plus, the plain engravings compete for the cheapest block areas, so the urgent transfers crowd them out, which is why they always fall behind. A large number of pending transactions goes hand in hand with a large number of plain text indents. So these small texts increase the demand for block spaces. However, this is not just good news for miners. Because even though miners’ fees have increased due to mining, their income is still low overall. This is because the hash price is at an all-time low and the halving event is approaching. The hash price is only around $0.059 per terahash per second these days. This is 50% below the hash price at the height of the Bitcoin Ordinals frenzy and 85% below the $0.4 price at the peak of the bull market. As a conclusion, it can be said that if the price of BTC does not increase significantly, many miners may move into the loss zone. Especially following the halving next spring when block rewards will drop to 3.125 BTC. Encroachments are therefore still present in good numbers, but they are always ranked further back compared to cash flows, they do not supplant them.
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