Only from Transaction Fees, Bitcoin Miners Cuan IDR 2.7 Trillion

Liputan6.com, Jakarta Crypto analytics company Coin Metrics in its latest report revealed that Bitcoin miners generated USD 184 million or the equivalent of IDR 2.7 trillion (assuming an exchange rate of IDR 15,079 per US dollar) from transaction fees from April to June.

Reporting from Yahoo Finance, Thursday (6/7/2023), Bitcoin miners were flooded with funds from the multi-million dollar transaction fees generated this past quarter due to the popularity of the token and the BRC-20 Ordinal.

Compared to $2.4 billion in overall Bitcoin mining revenue, that number may sound small, but the latest total transaction fees represent more than the previous five quarters combined.

Launched earlier this year, Ordinals is a protocol that allows people to create NFT-like assets on the Bitcoin blockchain by putting data into satoshis or the smallest unit of currency that Bitcoin can divide.

Then the Bitcoin BRC-20 token was introduced in March 2023 which took inspiration from Ethereum’s ERC-20 token standard. The BRC-20 token has ballooned to a market capitalization of over USD 240 million or equivalent to IDR 3.6 trillion since its introduction, according to CoinGecko.

In order for people to mint BRC-20 tokens users must submit a transaction along with a fee in order for their transfer to the token to be processed on the Bitcoin network and included in the next block of transactions.

Bitcoin Transaction Fees Was High

Transaction fees on Bitcoin were so high in May that some people claimed Bitcoin was under attack. In addition, the number of Bitcoin miners earned from transaction fees exceeded Bitcoin block subsidies for the first time since 2017.

The Coin Metrics report notes the number of payments related to transaction fees has diminished as enthusiasm around BRC-20 ebbs. However, the amount of funds miners receive from transaction fees remains strong.

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