Bitcoin miners are getting huge benefits because of surging new token inscriptions on the Bitcoin network via Bitcoin ordinals.
In early of this year the Bitcoin Ordinals concept was introduced and this concept grabbed huge popularity within a couple of months. With the help of the Bitcoin ordinals protocol, people can mint unique digital items on the Bitcoin network directly e.g. NFTs, data, tokens, etc. Some people are trying to bring a better use case of this inscription method in a better way to bring a better way of Bitcoin use case.
Over the last few months, people’s activities on the Bitcoin blockchain network surged rapidly because of inscriptions. The surging network traffic leads to very high transaction fees on the Bitcoin network.
In the present time, the Bitcoin network fee has been at an all-time high in the last 20 months and the majority of Bitcoin miners are not in the mood to lose this opportunity to generate revenue because people are spending huge amounts of money to make money from shit-tokens (useless tokens inscribed on Bitcoin network).
Data by BitInfoCharts showed that the current average Bitcoin network fee is above $35 which is a very big amount for small Bitcoin investors.
At the same time, the current network fee on the second top-ranked crypto network Ethereum is below $15, even though Ethereum processes a huge amount of transactions for Decentralised Finance (Defi) protocols.
Data on mempool.space showed that transactions with a $2 fee are failing to get priority and that is why they are pending.
Currently, more than 3 lakh transactions are unconfirmed and the low priority fee is $13.37.
Because of these Bitcoin Ordinals inscription activities, Bitcoin network failing to deliver transaction at low fees secondly no crypto project came up with any innovative idea to use those concept in a better way without impacting Bitcoin network’s scalability.
Popular Bitcoin proponent Hodlnaut said that the current high Bitcoin network fee is temporary but it is a reality of the future because scaling is not possible on the Layer-1 network.
Kinda blows my mind that so many people seemingly have never reflected on the obvious fact that fees will be high with high demand for block space.
Fees are currently artificially and temporarily high due to JPEG clownery, but it is nothing more than a glimpse into the future.…
— hodlonaut 80 IQ 13%er
(@hodlonaut)
According to some Bitcoin analysts, the surging Bitcoin mining activities amid hike in the network fee is a direct signal for Bitcoin’s upcoming short rally.
#Bitcoin Hash Price has ripped to $125k per Exahash, the highest value since July 2021 and back to pre-2020 halving levels.
The uptick in transaction fees has offset the tremendous 200% increase in hash-rate since July 2021 competing for the block rewardhttps://t.co/8iiVvfa6Me pic.twitter.com/1795gHFBOv
— _Checkɱate
(@_Checkmatey_)
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