Ki Young Ju, Co-founder & CEO of Crypto Quant, revealed that Bitcoin miners are experiencing a notable increase in revenue generated from transaction fees during each cycle when compared to block rewards.
Ju’s statement aligns with the findings of Julio Moreno, Head of Research at CryptoQuant, who took to Twitter to engage in the ongoing debate surrounding the sustainability of Bitcoin transaction fees as a means to offset the diminishing block subsidy resulting from halving events.
In his tweet, Moreno remarked:
A lot of debate lately about if Bitcoin transaction fees would be enough to replace the decline of block subsidy due to halvings. This is difficult to know. However, if we look at fee trends the picture is not all grim. Every cycle fees have gained share of the total block reward and have increased in dollar volume.”
This analysis suggests that despite concerns over the reduction in block rewards due to Bitcoin’s periodic halving events, the revenue generated through transaction fees has shown a consistent upward trend in both relative and absolute terms.
The debate regarding the long-term viability of transaction fees versus block rewards remains an ongoing topic within the cryptocurrency community.
Texas Bitcoin Miner Earns $31.7M from Power Credits
Meanwhile, according to a recent report, Riot Platforms Inc., a major Bitcoin mining company in Texas, reported a record-breaking $31.7 million in earnings from power credits during the August heat wave.
These credits were obtained through participation in demand response programs offered by the Electric Reliability Council of Texas (ERCOT) to mitigate energy shortages. While Riot reaped the benefits, Texas residents faced soaring electricity costs and power disruptions during extreme weather events.
This August windfall surpassed their entire 2022 credit earnings and marked a significant increase from the $13.5 million earned in Q2. Despite Bitcoin’s declining value, rising energy costs, intensifying competition, and an impending ‘halving’ event, Riot’s unique power strategy enabled this impressive feat.
The power credits earned in August were equivalent to approximately 1,136 Bitcoin, with Riot producing 333 coins that month. Riot’s stock price surged more than threefold this year to around $11.20, rebounding from an 85% drop in the previous year.
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