Good Afternoon from BitOoda! Last week, we discussed broadly hash-rate and the effect it can have on the network. We created the BitOoda Hash™ physical hashpower contract to help mitigate risks for miners, as well as provide a solution for buyers of these contracts to get exposure to mining — without owning a facility and having to buy or operate hardware.
As we approach the upcoming halving, one metric we are watching closely is the relationship between transaction fees and total block rewards.
Transaction fees currently make up a small part of a miner’s revenue stream — roughly between 1–3% per day — but after block subsidies are cut in half, these will probably need to play a bigger part. We would like to see this ratio increase, or else miners could be taking hits against their current revenues post-halving. If price doesn’t appreciate with the halving event, we could also expect to see hash-rate drop, as some miners may be operating at parity — either with higher electricity costs or using older generation machines.
Another interesting dynamic is the relationship between transaction fees and transaction count. In the chart above, you can see that the average transaction fee is correlated to the total transaction count; as the number of network transaction increases, so too does the average transaction fee.
At BitOoda we are constantly looking for different ways to help facilitate a robust and sustainable mining ecosystem. If you would like to talk about the halving and ways you can mitigate your risk going into it, feel free to reach out to us at firstname.lastname@example.org.