Evaluating Bitcoin Mining Fees As Price Dips – Bitcoin Magazine


Bitcoin fee markets are showing small signs of life despite bitcoin’s price dropping roughly 70% since its latest all-time highs and hash price — a measure of the value for hash rate — falling by roughly the same amount.

Fees and the long-term prospects of fee revenue for miners is a hotly-debated topic, especially during bearish market trends. Bear markets are prime time for arguing about fees not only because market participants are bored and antsy, but also because this source of revenue dwindles considerably during these periods.

Despite the on-going bear market — which just finished its eighth consecutive month — the bitcoin fee market is still showing signs of life. This article provides an overview of a few bits of surprising bear market fee data, and it discusses in context of these numbers the likelihood of deciding whether or not Bitcoin’s future is doomed or relatively positive, despite what a growing number of loud critics continue to assert.

Bitcoin Bear Market Fee Data

Starting with absolute fee revenue, the trend in dollar-denominated fee growth is still slightly downward. Most of the drop occurred through the final months of 2021, however, and year-to-date fees have been mostly flat. The chart below shows total weekly fee revenue from the market’s peak in November 2021 to date with a logarithmic trend line to highlight the overall fee growth trajectory.

Source link Bitcoin Magazine


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