Bitcoin Miners' Revenues Reach Record Levels
Date: 2023-12-16 Author: Dima Zakharov Categories: BLOCKCHAIN
In a recent report by Bitget, Bitcoin miners' earnings from on-chain fees have surged from 1.7% in August to an impressive 19.57% by November. Meanwhile, November witnessed daily mining revenue from block rewards surpassing $40 million. Bitcoin's price has also surged by 161% since the beginning of the year, currently standing at over $42,000.
Bitcoin miners' incomes have reached an all-time high due to the increase in on-chain fees.
Throughout 2023, the Bitcoin ecosystem has been rapidly evolving. New asset types, such as Ordinals NFT and BRC-20 tokens, have garnered significant community enthusiasm, leading to a substantial increase in Bitcoin miners.
In the meantime, BRC-20 tokens, invented by Casey Rodarmor in January, have gained popularity as one of the most significant technological achievements in the last 15 years. Bitcoin Ordinals are a numbering system that assigns a unique number to each satoshi, allowing for tracking and transmission. Combined with the recording process that adds a layer of data to each satoshi, users can create unique digital assets on the Bitcoin blockchain.
The Ordinals token (ORDI), the first meme coin created under the BRC-20 standard but not linked to the Ordinals protocol, currently has a market capitalization of $1.34 billion. Researchers have also noted the emergence of other Bitcoin token standards, such as ARC-20 from the Atomicals protocol, which add value to the Bitcoin ecosystem.
Despite high gas fees, there is a strong community demand for issuing BRC-20 tokens. Using the example of the meme coin Sats (SATS), researchers noted that SATS was fully minted on September 24th, with 21,107,258 coin courts and 36,061 holders, despite gas fees exceeding $15 million.
Second-layer solutions like the Lightning Network will serve as the primary technical foundation supporting Bitcoin payments on a larger scale.
Many of the communities formed around Ordinals are primarily focused on entertainment. Games, collectibles, speculation, socializing, and interaction precede more serious uses, such as corporate or institutional adoption.
