Bitari Miners reported that Bitcoin and Ethereum Miners use more than 99 percent of all fees generated by the wider crypto mining ecosystem.
However; high fees are not positive for the Blockchain network. BTC and ETH may be advantageous for minimers, but expensive for end users who may choose cheaper alternatives for transactions.
Altcoins are not a money pool
Meeting in the millions of dollars every month; Collecting transaction fees causes cryptovoltaic minimers around the world to be like Bitmain, or an enthusiast who manages a host on his GPU-optimized laptop.
But altokines aren’t what makes miners profitable. Messari analyst Ryan Watkins published a study in this area, concluding that fees for Bitcoins and Ethereum make up more than 99 percent of all liner revenue.
Outside Bitcoin and Ethereum virtually every blockchain is free to use
Surprisingly, Dogecoin, the self-proclaimed currency used by Shiba Inu dogs, is among the most profitable projects for miners, surpassing such powerful homes as Bitcoin SV and even Bitcoin Cash.
Dogecoin was launched as a joke in 2013 but quickly intercepted Reddit and 4chan and reached a market capitalization of $60 million in 2014. But its use is still widespread, if there is data on payments for mining.
The Messari chart for the cryptocurrency fees shown below shows an income of less than $100:
( Source : Messari )
Good for miners, not users.
Only Bitcoin and Ethereum generate more than $100,000 for the miners, and all cryptov currencies give miners less than $500 a day. However, the latter is not necessarily a negative point.
Coins such as Bitcoin Cash and Zcash are almost free, and since the beginning of 2019 their value is less than a penny. This can make them more attractive to nocoiner users in both developed and developing countries, who are unlikely to pay more than a dollar for each transaction.
Mining is an expensive business that requires hundreds of thousands of upfront investments to build a profitable regulated temperature farm.
The growth of crypt currency has been the subject of much talk since mining became popular. Critics say that huge rewards are not an indicator of success for any network of blockbusters and, conversely, should remain low.
Watkins Messari wrote about it:
“Ask one person and he will tell you that high fees are desirable because they signal a high demand for block space. Ask another person, and he will tell you that low charges are desirable because they give users more access to block space.
Bitcoin fees are going down.
At the same time, operating costs at Bitcoin fell below $ 1 last week when CryptoSlate was reported . The last time the metric was seen was in January 2020, and for the first time since the Bitcoin event, which took place on May 12, it doubled.
Fees ranged between $0.70 and $0.75. Last week, but it has risen to $1.50 since then. At the time of writing. On the other hand, the Ethereum network is ahead of its long-awaited ETH 2.0 update.
2.0 sees that Ethereum is moving to a stake proof algorithm, and data that more than 120,000 wallets now contain the minimum 32 ETH needed to run the validator node – presumably pending a betting fee.
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Meanwhile, the Ethereum GAS network is reaching unprecedented highs. As previously analyzed by CryptoSlate, the increased activity of stable and DeFi may be associated with the increased use of GAS. Last week we noted that Tether’s Ethereum blockbuster transfers (USDT is available for five other protocols) have increased significantly.