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Share of Miner Revenue from Bitcoin Transaction Fees Skyrockets to Early 2018 Levels

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Tue, 19/05/2020 - 14:30
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Share of Miner Revenue from Bitcoin Transaction Fees Skyrockets to Early 2018 Levels
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According to data provided by on-chain analytics firm Glassnode, Bitcoin miners now derive close to 15 percent of their revenue from transaction fees.

This is the highest level since early 2018 when the cryptocurrency industry was in the middle of the retail-driven crypto frenzy.

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Bitcoin is becoming more expensive 

Bitcoin’s average transaction fee has skyrocketed to $5.83, BitInfoCharts data shows.

The world’s leading cryptocurrency hasn’t been this expensive to send since June 27, 2019,  the day the BTC price reached its 2019 high of nearly $14,000.

Still, Bitcoin’s transaction fees don’t come close to the previous bull run when they peaked at $54.90 on Dec. 21, 2017.

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image by bitinfocharts.com

As reported by U.Today, investor Ari Paul believes that high fees are an acceptable trade-off if they come with security and decentralization.  

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The reason behind high fees 

This time, Bitcoin’s fees are on the rise due to the recent 50 percent reduction of the miner’s reward that has significantly slowed down block production. 

This has led to significant mempool congestion, which means that users have to pay more to get their transaction confirmed.

Bitcoin’s mining difficulty is expected to drop more than 5.6 percent after the next adjustment, which will give miners a breather. 

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

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