Bitcoin News and Finance
Is Ethereum Outshining Bitcoin in Terms of Fees? Crypto Voices Share Thoughts Skip to main content

Is Ethereum Outshining Bitcoin in Terms of Fees? Crypto Voices Share Thoughts

Is Ethereum Outshining Bitcoin in Terms of Fees? Crypto Voices Share Thoughts

Lately, the crypto sphere, with bitcoin aficionados in particular, has been buzzing with chatter about the fees pocketed by BTC miners. They’re pondering if these fees will adequately offset the impending 2024 halving and the accompanying drop in revenue. On the other hand, Ethereum, the runner-up in the crypto world, is raking in significantly higher weekly fees. Here’s an insight into the leading blockchain networks and where users are truly shelling out for block space.

Bitcoin Proponents Discuss the 2 Leading Blockchains and Transfer Fees

Many of today’s leading blockchain networks come with transfer fees, designed to motivate miners or validators to oversee and validate transactions, fortifying the network. Besides ensuring security, these fees deter spam, prioritize transactions, and cater to distinct economic policies based on each blockchain’s consensus guidelines.

In the Bitcoin realm, when miners discover a block, they’re rewarded with the fees associated with that particular block. There’s a prevailing sentiment that, for Bitcoin’s security to remain robust after multiple halvings, its fees might need an uptick.

Yet, if there’s a surge in user adoption and peer-to-peer interactions, fees could potentially be reduced. However, this assumes the network can seamlessly scale to meet such intense demand.

This week, the crypto community has been abuzz with chatter about BTC fees, especially as data indicates Ethereum (ETH) validators are raking in significantly more than BTC miners. Dive into archived stats from cryptofees.info on September 9, and you’ll find that in the past week, ETH validators bagged around $3.54 million in fees.

In contrast, BTC miners amassed just $694,632. Crunch the numbers, and ETH’s fees were 5.1 times higher than BTC’s. But here’s an intriguing throwback: two years ago, just before BTC’s and ETH’s record highs, Bitcoin ranked sixth in the fee league.

During the week of September 27, 2021, BTC miners gathered $548,425 within seven days, while ETH hit a staggering $24.16 million. That means, back in that 2021 week, ETH’s fees overshadowed BTC’s by an astonishing 44.1 times.

Fast forward to this week, BTC bagged the silver medal for seven-day fees, with Uniswap trailing at $519,144 and BNB chain logging $242,101. Over the past month, of the massive $807.01 million revenue BTC miners generated, a mere 2.13% came from fees.

But the last nine days paint a rosier picture: BTC miners have witnessed an average fee intake of 2.91% relative to the reward subsidy, marking an uptick since September 1, 2023. On September 7, 2023, the X account, known as “Fiatjaf” and boasting 18,600 followers, sparked a conversation by querying opinions on data from cryptofees.info.

Fiatjaf’s post on X showed the data from cryptofees.info and how Ethereum’s seven-day fees were much higher. “What is your honest take on this?” he asked. Coinkite’s founder, Rodolfo Novak, weighed in, asserting, “Bitcoin is more efficient at transporting value.” Joel Valenzuela, a crypto aficionado, countered, stating, “Ethereum is the top cryptocurrency right now.”

John Carvalho expressed skepticism about the fee comparison on cryptofees.info, quipping, “You may as well add Apple and Visa and Twitter and JPMorgan and every other centralized thing to your Bitcoin FUD list.”

Engaging with Carvalho’s critique, Fiatjaf retorted, “So you think Bitcoin is losing to Ethereum as much as it is losing to Apple and Visa?” Ethereum advocates in the discussion defended high fees as a testament to the robustness of the smart contract-driven blockchain.

Adding another perspective, Cobra Bitcoin, the mysterious curator of Bitcoin.org, commented, “We should be grateful Ethereum didn’t adopt SHA256 as its mining algorithm.” He elaborated, “Miner incentives will always be influenced not just by activity within Bitcoin, but also outside of it. If more profitable SHA256 sh**coins appear, miners would be stupid to not go mine them.”

What do you think about ethereum validators obtaining more in fees than bitcoin miners? Share your thoughts and opinions about this subject in the comments section below.

Comments

Post a Comment

Popular posts from this blog

Custodial Lightning Network Service Attack Discovered by LN ‘Newbie’ — Hacker Strikes 6 LN Custodians

On September 18, a Redditor posted to the r/bitcoin forum and explained how he discovered a way to “attack [the] lightning Network’s custodial services.” The Reddit account dubbed “Reckless Satoshi” wanted to figure out if a “discrepancy between real routing fees and service’s transaction fee can be exploited for a profit.” The researcher disclosed that he wanted to see how large the damage could be and said “it is bad.” 6 Lightning Network Custodial Services Attacked, Researcher Discloses Findings to Offenders Prior to Public Disclosure A Redditor called Reckless Satoshi published a disclosure post on r/bitcoin this past Saturday and disclosed how he had found a vulnerability with routing fees and some of the Lightning Network’s custodial services. The research attack was done in good faith and after it was complete he disclosed the bugs to the offending services before publishing his findings. Reckless Satoshi used the Lightning Network (LN) attack on six different services incl...
Post a Comment
Read more

Axie Infinity Down 40% Since Last Week’s Price High, Protocol Revenue Outshines Competitors

Last week, the game token leveraged within the Axie Infinity gaming universe skyrocketed to all-time highs, while other crypto markets remained extremely lackluster. During the last seven days, Axie Infinity’s platform token has dropped significantly in value shedding more than 12%. Meanwhile, the game platform’s smooth love potion token has slid over 8% over the last 24 hours. Axie Infinity Down More Than 40% Since All-Time High Not too long ago, the axie infinity (AXS) token was a topical conversation because it reached an all-time high on July 15. At the time, AXS managed to capture $28.93 per unit and since then it has shed 12.8% during the last seven days. The axie infinity (AXS) token is used within the blockchain-based game that involves battles between token-based creatures called “Axies.” AXS is used for the game’s governance system as well as other actions within the game. At the time of writing axie infinity (AXS) is exchanging hands for $16.70 per coin. AXS/USD on Ju...
Post a Comment
Read more

Play-to-Earn Game From Polker (PKR) Exchange Listing – Endorsed by Akon

The Play-to-Earn NFT based Polker.Game ‘s native token $PKR has been officially listed on the popular centralized exchange BitMart. Polker.game has been in the spotlight recently as Akon, the American R&B superstar and record producer gave his official endorsement of polker stating that the “game is revolutionary” and that Polker is “hands down.. the best play to earn, NFT game in the space.”. With the BitMart listing and celebrity endorsement from Akon, Polker is perfectly positioned to become a major player in the Play-to-Earn league. Watch Akon’s Video Here What is Play-to-Earn? Although not a new concept, play-to-earn has become a trending term due to the popularity of the NFT game AXIE infinity. In the past, previous play-to-earn games have also achieved success – however, thanks to the huge amount of development in the blockchain space in recent years the gaming experience is now massively improved. Play-to-Earn games are essentially free to play and open to anyone and...
Post a Comment
Read more

China to Crack Down on Copyright Infringement Through NFTs

Authorities in China are going after creators of digital collectibles based on other people’s works of art, the use of which was not authorized. The government offensive is part of a campaign to combat online copyright infringement and piracy with the participation of several departments. Regulators in China Move to Strengthen Copyright Supervision of Online Platforms The National Copyright Administration of China (NCAC) has recently launched a campaign against copyright infringement and piracy on the internet, together with the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Internet Information Office of the People’s Republic. A major objective of the initiative is to improve copyright supervision of online businesses by investigating cases involving the sale and distribution of infringing products on short video, live broadcast and e-commerce platforms, and promptly dealing with infringing content, the agency announced in a press r...
Post a Comment
Read more
Blogarama - Blog Directory