The brand new “flippening”: Bitcoin charges surpass block reward for miners

Fast Take

• Bitcoin charges have began to blow up because of the emergence of Ordinals and BRC-20 tokens.
• Taproot made it simpler for “Ordinals” to enter the Bitcoin blockchain.
• The mempool is processing as designed, however in consequence, the charges are adjusting a lot larger.
• This leads to considered one of if not the very best recorded transaction charges ever.
• This has probably sorted out Bitcoins safety mannequin; when the block reward diminishes, will the miners proceed to mine? Would they be incentivized sufficient?
• Miners, for the primary time since 2017, are getting paid greater than the block reward; in block 788695, miners had been paid 6.701 ($193,075) in charges. On the identical time, the block reward was 6.25 BTC.
• Nonetheless, if you happen to use the Bitcoin blockchain for funds, your charges have gone up, however that is the work of a free capital market. If individuals wish to proceed minting tokens through “ordinals,” they hope to promote for greater than the price of mint.
• For historic context, 31.7% of miner income has come from charges over the past 24 hours.

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