Altcoin News: The Amount of Bitcoin Commissions Is Approaching $1 Billion
October 16, 2019, by Marko Vidrih on ALTCOIN MAGAZINE
The total amount of commissions collected by Bitcoin miners for adding user transactions to the blockchain will soon overcome the $1 billion mark, Coinmetrics draws attention in its latest report.
As of October 13, Bitcoin users paid $996 458 718 commissions.
At the same time, the Bitcoin network is preparing to cross another key mark: the total mining revenue, including commissions and the rewards provided by the protocol, will soon reach $15 billion.
However, since the beginning of 2018, transaction processing fees have been taking less and less place in the total income of miners. On January 31, 2018, the commission accounted for about 12% of the total revenue of miners. On October 13, the value was 6.6%. This means that since February 2018, the total amount of commissions collected has not grown as fast as the amount of awards.
The median value of the commission in the Bitcoin network soared at the end of 2017 and reached $34, while for Ethereum the peak level was $3. Since February 2018, however, this value for Bitcoin does not exceed $4.
On October 13, Ethereum commissions accounted for 3.6% of the total revenue of miners. Compared to Bitcoin, the value has remained relatively constant since the beginning of 2018.
This is due to the fact that ETH commissions grew much faster over the indicated time periods than Bitcoin commissions. The total amount of commissions collected on the Bitcoin blockchain from January 1, 2018, increased by 74%, while in Ethereum — by 400%.
As an additional comment, analysts point out that for the fifth week in a row Ethereum has exceeded Bitcoin in the market, however, with regard to the growth of hash rate, leadership remains with the first cryptocurrency. Over the past week, the Bitcoin hash rate has increased by 3.5%, while Ethereum has fallen by 0.5%. Similar dynamics are observed for the second week in a row.
The authors of the report also note that a number of large digital assets experienced a decline during the month. However, XRP and Stellar showed moderate growth; other cryptocurrencies fell, but less than Bitcoin. Recent high-profile events, such as the SEC’s refusal to approve the Bitwise Bitcoin ETF and its urgent order to limit the Telegram Open Network ICO, did not have a significant impact on the market.
“ The fact that prices for smaller assets remained resilient (relative to Bitcoin) in the face of these developments suggests that increased regulatory scrutiny has already been priced into the market,” conclude Coinmetrics.
Images via Coinmetrics
Author: Marko Vidrih
