When the last Bitcoin halving took place in May of this year, some personalities on crypto Twitter and elsewhere prophesied the great surrender of the Bitcoin miners. Mining would no longer be profitable; too many miners would have to give up. The production costs would have doubled, but the block rewards – as is well known – halved. Around 3 months after the halving, the Bitcoin has reached a new all-time high in the hashrate of the Bitcoin network. Data reveals that increased transaction fees after halving halted a possible death spiral.
Transaction fees are a significant source of income in Bitcoin mining
It’s not too far-fetched to say that Bitcoin (BTC) is doing wonderfully right now. Examples of this are a new all-time high in the hashrate, price increases of around 40% since the halving, and future-oriented investment strategies for international stock corporations. When the last halving took place in May 2020, reports of the threat of mass surrender in Bitcoin mining gave less cause for joy. Even less could we assume that only 3 months later the health and strength of Bitcoin and its network could no longer be denied.