There have been several movements in the crypto market since the recent Bitcoin halving. It has also been noticed that after the halving, there is a huge drop of around 60% in Bitcoin miners revenue. Following the halving, the block reward has been cut in half due to which the miners are now dependent on the Bitcoin transaction fees to a great extent.
It has been noticed that on May 10, Bitcoin miners were able to earn 2188 BTC which has fallen down to 852 BTC on the day of halving. This was a 61% drop in total. Due to this halving, a lot of miners were forced to reduce the hashrate of their network. Because of this reduced hashrate, the block interval has been increased which decreased the processing of the blocks.
These decreased blocks have resulted in a decrease in block rewards for the Bitcoin miners. The miners are now relying only on the transaction fees and there is some relief for them as there has been a huge increase in the transaction fees. By the end of April, transaction fees were $0.62 and as of May 15, this fees have increased to $5.21. After this increase in transaction fees, it has been noticed that this is about 17% of the revenue of the miners and this proportion is highest since January 2018.
Now the Bitcoin miners are hoping towards the next difficulty adjustment which is expected to take place in three days. As per the calculations, it has been assumed that the difficulty will only increase because of the growth in hashrate. However, it has also been predicted that by the time of difficulty adjustment, there might be a slight decrease in it. Crypto analysts are also assuming that over time, halving will keep cutting the block rewards and the miners will be relying more on the fees. However, if the transaction fees will become very high then users might drive away from the network.
Articles You May Read.