Bitcoin miners are getting crazy from the common texts.
The proliferation of formal articles on the Bitcoin network is good news for miners, but not so good for users. As demand for space increased over the weekend, transaction fees increased, and miners made more money.
By the end of the week, Bitcoin miners were collecting transaction fees instead of newly created BTC. As of May 2022, the mining profitability has reached its peak.
When Bitcoin miners make mint
On December 16, Casa HODL co-founder Jameson Lopp posted an example of a block where Bitcoin miners were minting.
The block earned the Brains Pool miner a huge subsidy and a payout of 13.4 BTC, around $570,000 at the time.
Bitcoin educator Kashif Raza says it's more incentive for miners:
“Common practices have been a blessing for miners and a nightmare for retail, sending microtransactions.”
“This means that many miners will deploy machines to get the maximum block rewards,” he added.
Read more: Bitcoin Half Cycles and Investment Strategies: What You Need to Know
According to BitInfoCharts, average BTC transaction fees have risen to their highest level since April 2021. At the end of the week, it costs up to $37 per Bitcoin transaction.
“How many people make less than $37 a day?” asked ‘Kawaii Crypto', which he added is around 5.39 billion people.
“Two-thirds of the world's population is excluded from sending “fast” Bitcoin tx unless they want to spend more than a day's income.
A Glassnode analyst commented that the takeover of ‘Checkɱate' was ridiculous. “It would take 63 years for all 8 billion people to make one transaction,” he added.
According to cryptographer Adam Buck, turns are here to stay, so people should stop complaining about them.
“Trying to stop them, they make it worse. The high cost will force Layer-2 adoption and innovation. So relax and build things.
Hash value skyrockets
However, Bitcoin miners are going to have a good holiday season. Profitability, or the price of hash, rose to a 19-month high, even higher than the last system rules in May.
On December 17, the hash rate rose to $0.130 per TH/s/day, according to the Hashrate Index. The last time it was higher than this was in May 2022. However, it is still down from the all-time high of $0.400 in June 2019.
Hashprice is a function of four inputs, network difficulty, bitcoin price, block subsidy and transaction fees.
At the time of writing, Bitcoin prices were in retreat, down 2% on the day to $41,124 as markets continued to pull back.
Disclaimer
Adhering to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This newsletter aims to provide accurate and up-to-date information. However, readers are advised to independently verify facts and consult with experts before making any decisions based on this content.
