The Bitcoin network is currently experiencing a sharp increase in network fees due to 332,000 unpaid transactions.

The Bitcoin network is currently experiencing a surge in network fees due to 332,000 unconfirmed transactions as of 12:05 p.m. ET on June 7.

At the time, network fees stood at 514 sessions for high-priority transactions and 513 sessions for low-priority transactions, with prices rising to around 520 sessions per transaction earlier in the day. In US dollars, this represents a fee of between $50 and $52 per transaction. The priority fee has since dropped to around $46 per transaction.

According to blockchain journalist Colin Wu, the 332,000 unconfirmed transactions are suspected to be the result of central exchange OKX’s collection and sorting of wallets, although this had not been confirmed at the time of publication .

An overview of the network’s rate increases Friday morning. Source: Bitcoin Memopool Block Explorer.

The Post-Halving Economy and the Challenge Facing Bitcoin Miners

Concerns about miner difficulties, high network fees, and miner profitability on the Bitcoin network have become more acute after the halving.

The reduction in the block reward from 6.25 Bitcoin (BTC) to 3.125 BTC in late April significantly affected miner profits.

Bitfarms reported a 42% drop in mining revenue for May, the first full month since the recent halving event. The Bitcoin mining company revealed in its month-end report that 156 Bitcoins were earned in May compared to 269 in April.

The Bitcoin mining company also explained that temperatures at its facilities in Argentina were unusually low in May, recording some of the worst weather conditions in 44 years. These adverse weather conditions caused the company’s Rio Cuarto facility to be closed for eight days, contributing to a decline in the total number of bitcoins mined.

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Since the start of 2024, US Bitcoin miners have spent a total of $2.7 billion on electricity, despite increasing computing difficulties and declining rewards.

According to analyst Paul Hoffman, “Since the start of 2024, Bitcoin mining in the United States has consumed a whopping 20,822.62 gigawatt hours of electrical energy. » The analyst added that the amount of energy used by Bitcoin miners since the start of 2024 alone could provide energy to 1.5% of American homes for an entire year.

In April, it took an average of $52,000 to mine one bitcoin. After the halving, the cost of mining one bitcoin more than doubled to an average of $110,000.

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