Halving and Runes Shake Up Miner Revenues
The recent Bitcoin Halving, where miner rewards are halved every four years, coincided with the launch of Runes, a new protocol for creating fungible tokens on Bitcoin.
Runes vs. Ordinals
Runes differ from Ordinals, which “inscribe” data onto Bitcoin, by creating interchangeable tokens. This simplicity makes Runes more efficient than other token standards.
Fees Skyrocket
The popularity of Ordinals and Runes has driven up transaction fees on the Bitcoin network. Miner revenue from fees reached a record high of $80.5 million on the day of the Runes launch.
Fees Become More Important
Historically, fees have been less significant than block rewards for miners. However, with the Halving reducing block rewards, fees are becoming more crucial for miner survival.
Future of Bitcoin Mining
Ordinals and Runes suggest that applications could dominate the Bitcoin network in the future, potentially inflating fees and becoming the primary income source for miners.
BTC Price
Bitcoin has rebounded to around $65,900 after falling below $60,000 before the Halving.
