Bitcoin Ordinals Can Help BTC Miners In The Long Run- Here’s How To Do It

by James · March 11, 2023

Ordinal inscriptions have passed 411,000.
The contribution to transaction fees in the last week has also exceeded 6%.

Ordinals and other Layer 2 solutions have meant that the Bitcoin network is no longer only used for BTC transactions. Although Ordinals has been met with mixed reactions from the Bitcoin community, its growing popularity and potential effects on the Bitcoin network could be a game changer for BTC miners.

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And the Ordinals fever continues

As far as we can tell, Ordinals mania shows no signs of slowing down. The fact that established NFT firms such as Yuga Labs have entered the market with products such as TwelveFold is evidence of the technology’s growing adoption.

The entry of new players has led to an ever-increasing number of Ordinals inscriptions, which at the time of writing stood at 411,541.

Ordinals give positives to Bitcoin transaction fees

The overall fees have increased as the number of Ordinals inscriptions has grown. Almost $1.5 million in fees had already been collected as of this writing, and that number would only rise as more inscriptions were completed.

Dune and Messari’s data shows that the introduction of Ordinals has affected Bitcoin network transaction fees. Inscriptions has earned about $1.6 million in fees for miners over the past three months.

Over 6% of all trading fees in the last seven days have been linked to inscriptions.

Source: DuneAnalytics

These costs are expected to rise as Ordinals inscriptions become more common and compete for available block space, allowing miners to earn more money.

Eventually, this will become more important than ever. Miners must rely on transaction fees to ensure the continued security of the Bitcoin network as the block reward drops to zero.

The Current State of Bitcoin BTC Miners Earnings

According to the transaction fee data on blockchain.com, the total Bitcoin transaction costs were more than $579,000.

However, a deeper examination of the chart revealed that the network’s transaction fees had decreased over time.

The consequence is that the miners’ income will also fall. Furthermore, miners’ incentives will be further reduced if future halving events occur, increasing their reliance on transaction fees.

Source: blockchain.com

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The Outlook of Bitcoin Ordinals

Regardless of where you stand on the issue of Ordinals, the fact remains that the steady expansion will eventually result in more fees being contributed to the Bitcoin network.

Additional fees ensure that miners will make money and encourage them to continue protecting the network. However, how far Ordinals can develop is still an open question. In addition, the entry of Ordinals can open up other NFT projects online.