Bitcoin Miners See Soaring Profits from Bitcoin NFTs and Meme Coins
Bitcoin miners are experiencing amplified profits as a result of the introduction of Bitcoin NFTs and Meme coins, despite facing resistance from staunch Bitcoin purists who advocate for using Bitcoin exclusively as a means of preserving value.
According to a May 21st report by Bloomberg, the daily earnings of Bitcoin miners, which encompass mining rewards and transaction fees, have skyrocketed by as much as $40 million. This notable surge in revenue can be attributed to the congestion on the Bitcoin network, leading to an increase in transaction fees.
Galaxy Digital Holdings forecasts that the value of the Bitcoin NFT ecosystem will reach $4.5 billion by 2025. Since the introduction of Bitcoin NFTs in March, around 25,000 meme coins have been generated on the Bitcoin blockchain.
It is worth noting that the supply of Bitcoin is limited to a total of 21 million coins, and only 10% of the overall mining capacity remains. The anticipated date for the halving of the Bitcoin block reward is May 1, 2024, which will reduce the block reward from 6.25 coins to 3.125 coins. Based on the current mining rate, it is estimated that Bitcoin mining will be completed by the year 2140.
What is the bitcoin halving?
Bitcoin halvings occur approximately every four years, or after the addition of approximately 210,000 “blocks” to the blockchain. During this event, the rewards granted to bitcoin miners, who are individuals running specialized equipment to verify transactions and generate new tokens, are reduced by 50%. The purpose of this measure is to decrease the number of new bitcoin units entering the market.
Supporters of the cryptocurrency argue that this can potentially drive up the price by intensifying the scarcity of bitcoin.
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