According to CoinDesk: Contrary to expectations, Bitcoin’s “halving” event didn’t slash revenues for Bitcoin (BTC) mining companies. Thanks to the simultaneous launch of Casey Rodarmor's Runes protocol, transaction fees surged, resulting in higher profits for Bitcoin miners.
Bitcoin’s notable “halving” procedure, which took place recently, was anticipated to severely reduce Bitcoin miners’ earnings, with rewards for creating new data blocks halved. Nevertheless, the rollout of the new Runes protocol, which caters to minting digital tokens on the pioneering and most vast blockchain, has been so well-received that it led to significant network congestion.
This spike in activity paved the way for transaction fees to reach record levels, offering Bitcoin (BTC) miners extremely high returns. Bitcoin transaction fees peaked at an average of $127.97 on April 20. That's more than seven times higher than the previous day and approximately double the previous record from three years ago. As a result, the total revenue for Bitcoin miners, factoring both block rewards and transaction fees, soared to a record single-day total of $107.8 million.
This development looks promising for major Bitcoin mining companies, such as Marathon Digital Holdings ($MARA), Riot Blockchain ($RIOT), Hut 8 Mining (HUT), and Core Scientific (CORZ).
As Bitcoin’s creator Satoshi Nakamoto originally designed, the periodic halvings are an effort to protect Bitcoin from inflation. As the rewards for miners decrease, the question arises – will there be sufficient incentives for miners to continue operating on the blockchain, considering their crucial role to the blockchain network's security.
According to Ten31, a Bitcoin-focused investment firm, concerns about Bitcoin’s long-term 'security budget' are misplaced. Despite a record $107.8 million Bitcoin mining revenue after the launch of Runes, the bolts and nuts of Bitcoin price changes can still be complex for newcomers to understand.
