Due to the ordinals, the share of transaction fees in miner revenue increased significantly at the end of 2023. Even if the top of this trend flattens out, mining for BTC is still worth it.
Miners earn around $45 million per day. However, revenue is likely to decline significantly after the halving in April this year.
Analysts expect a stress test for the mining industry. According to CoinShares, only five of 14 companies analyzed would remain profitable if the BTC price did not increase. In an analysis, Bitcoin ETF provider Grayscale warns that a price increase after a halving is not guaranteed. This could put miners in a “tense situation,” explains Grayscale.
Nevertheless, there would be hope through transaction fees. Due to the ordinals, these have increased significantly in the last year. Some miners have already earned more from the fees than the actual block subsidy of 6.25 BTC per block. If this trend continues – Ordinals currently make up around 20 percent of total miner sales – Grayscale does not see any problems for the industry in the long term.
You can find out what BTC investors should know about the MVRV indicator and what the cryptocurrency is doing in general in the new BTC-ECHO Bitcoin Report.
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