Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
Crypto Flexs
Home»BITCOIN NEWS»Why this makes life difficult for miners
BITCOIN NEWS

Why this makes life difficult for miners

By Crypto FlexsApril 27, 20243 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Why this makes life difficult for miners
Share
Facebook Twitter LinkedIn Pinterest Email

Data shows that the hype around new Bitcoin coins has declined sharply, which is not a good sign for miner profits.

The Bitcoin halving effect settles into miners’ profits as rune interest falls.

The much-anticipated Bitcoin halving took place a few days ago. Halving is a periodic event coded into the blockchain where the BTC block reward is exactly halved. It is held every four years, and the most recent event was the fourth.

Block rewards, which are heavily influenced by halving, are one of the two main ways miners generate revenue. Miners receive these rewards as compensation for solving blocks, which has historically been their main source of revenue.

Therefore, the halving could be problematic for the group’s finances as it would significantly reduce its profits. However, shortly after the recent halving, miner profits soared to a record $100 million.

The event cut block rewards in half, but at the same time caused a second source of revenue, transaction fees, to explode, helping total revenue increase rather than decrease as would normally be expected.

This surge in fees is due to the launch of the Loon Protocol, another major development for the network on the day of the halving. This protocol provides a way to issue fungible tokens on the Bitcoin blockchain.

Fungible tokens are indistinguishable from one another, just as individual BTC satoshis are usually completely identical. On the other hand, unique tokens are known as non-fungible tokens (NFTs).

Runes immediately became popular among users and network usage grew rapidly. Transaction fees are typically tied to network activity, so when this new protocol was discontinued, fees also increased.

This is natural, because during periods of high traffic, transmissions can be queued due to limited throughput on the network. Therefore, users have no choice but to pay high fees if they want to move faster.

According to data shared by on-chain analytics firm CryptoQuant, the high interest Runes received upon its launch led to an explosion in total transaction fees.

The value of the metric seems to have been quite high in recent days | Source: CryptoQuant on X

The chart also shows that the indicator has cooled since this massive peak. So while runes were quite popular at launch, interest in them has already waned.

Accordingly, Bitcoin mining profits, which were extremely high after the halving, also decreased.

Bitcoin Miner Profit

Looks like the miner revenue has taken a deep hit in the past few days | Source: CryptoQuant on X

Bitcoin miner revenue is now down to $50 million, half of its previous high of $100 million. So while Loon temporarily put miners in a comfortable position, that support line is now gone and these chain validators are starting to come under pressure.

BTC price

As of this writing, Bitcoin is trading at around $63,900, down more than 1% over the past seven days.

bitcoin price chart

The price of the asset appears to have plunged over the past couple of days | Source: BTCUSD on TradingView

Featured image from iStock.com, CryptoQuant.com, chart from TradingView.com

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Does Ethereum start their business? MorningStar Candlestick Pattern tells the story

June 6, 2025

Bitcoin Is An Unreplicable Lifeline In Authoritarian Regimes

June 6, 2025

South Africa central bank insists on the ‘old -fashioned’ exchange control law, which is still valid for encryption regulations.

June 5, 2025
Add A Comment

Comments are closed.

Recent Posts

XRP price prediction by reducing the volume of RLUSD (RIPPLE USD)

June 7, 2025

ARCA is disappointed with the IPO allocation and dumps the circle sharing.

June 7, 2025

Eigenlayer starts the redistribution function in testnets

June 6, 2025

Musk & Trump SPAT sends trenches from DOGE Price Crumbling, Tesla.

June 6, 2025

Musk & Trump SPAT sends trenches from DOGE Price Crumbling, Tesla.

June 6, 2025

Vortex uses NVIDIA Jetson to innovate medical imaging with CT-similar ultrasound.

June 6, 2025

2025 Best Free Cloud Mining

June 6, 2025

Sei Development Foundation: Use of US Innovation for Global Block Chain

June 6, 2025

Analyst Michaël Van de Poppe says Bitcoin is getting higher.

June 6, 2025

Does Ethereum start their business? MorningStar Candlestick Pattern tells the story

June 6, 2025

Solana’s Journey: Promotion of Challenge, Innovation and Speed

June 6, 2025

Crypto Flexs is a Professional Cryptocurrency News Platform. Here we will provide you only interesting content, which you will like very much. We’re dedicated to providing you the best of Cryptocurrency. We hope you enjoy our Cryptocurrency News as much as we enjoy offering them to you.

Contact Us : Partner(@)Cryptoflexs.com

Top Insights

XRP price prediction by reducing the volume of RLUSD (RIPPLE USD)

June 7, 2025

ARCA is disappointed with the IPO allocation and dumps the circle sharing.

June 7, 2025

Eigenlayer starts the redistribution function in testnets

June 6, 2025
Most Popular

🚀 What is the best cryptocurrency investment?

April 10, 2024

Bitcoin Price finally 1,550% that the ‘BTC RISK-OFF’ metrics fell low

May 7, 2025

Chaos on the Chains Announces Imminent Pioneering of the Next Generation of Mobile AR Strategies

January 11, 2025
  • Home
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© 2025 Crypto Flexs

Type above and press Enter to search. Press Esc to cancel.