Quick setting
- Bitcoin fees have started to skyrocket due to the emergence of ordinals and BRC-20 tokens.
- Taproot facilitated the entry of “Ordinals” into the Bitcoin blockchain.
- The mempool is processed as expected, but as a result, the charges are much higher.
- This results in one of the highest transaction fees ever.
- This potentially sorted out the Bitcoins security model; when the block reward decreases, will miners continue to mine? Would they be motivated enough?
- Miners, for the first time since 2017, are paid more than the block reward; in block 788695, miners were paid $6,701 ($193,075) in fees. At the same time, the block reward was 6.25 BTC.
- However, if you use the Bitcoin blockchain for payments, your fees have increased, but that’s the job of a free capital market. If people want to keep minting tokens via “ordinals”, they hope to sell more than the cost of the mint.
- For historical context, 31.7% of miner revenue comes from fees in the last 24 hours.
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