BitcoinBTC has successfully completed its fourth halving supply cut at a time when a legendary billionaire predicts a “quick, catastrophic” US collapse.
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Bitcoin price has so far defied warnings that the Bitcoin halving could trigger a “frenzied fire sale,” recovering from under $60,000 per Bitcoin to around $65,000 this week.
Now Bitcoin miners and analysts are grappling with the halving “chaos” that has driven Bitcoin transaction fees to “unprecedented” levels.
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Bitcoin price has risen after the Bitcoin halving despite rising network fees … [+]
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“This year’s halving was highly anticipated, as halvings usually are, but we had a small incident that requires further explanation,” Bitcoin author and self-proclaimed “Bitcoin expert” Jimmy Song wrote on X.
“The block subsidy dropped from 6.25 Bitcoin to 3,125 Bitcoin on block 840,000 as expected, but what was not expected was the associated fees of 37,626 Bitcoin. To give some context, this is easily the highest ratio of fees to block subsidy.” “One transaction paid almost 8 Bitcoins in fees alone” – a value of a staggering $520,000.
So-called Bitcoin miners secure the Bitcoin network and process transactions in exchange for newly minted Bitcoins and transaction fees via powerful computers that are believed to use as much electricity each year as some small countries.
Song added that the five Bitcoin blocks that followed had “fees of 4,486, 6.99, 16,068, 24,008, and 29,821 Bitcoin, respectively,” calling them the highest fees ever and the situation “unprecedented.”
Aside from people paying top dollar to be among the first to post a halving transaction, Bitcoin network fees have been driven up by Runes, a new Bitcoin protocol from the developer behind controversial non-fungible tokens (NFTs). on Bitcoin Ordinal Numbers, Casey Rodarmor.
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Bitcoin price has risen ahead of the Bitcoin halving in 2024.
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Runes is intended to enable the issuance of fungible tokens, i.e. memecoins similar to Dogecoin, in the Bitcoin network.
The first runes were issued on Bitcoin block 840,000, “leading to the chaos we saw,” Song wrote.
Launching Runes at the same time as the fourth Bitcoin halving is “thematically cool,” Rodarmor told Coindesk ahead of the Bitcoin halving.
“We already frequently see blocks where the fee is higher than the block subsidy, and this is becoming more common over time with each halving.”
Runes is similar to the BRC-20 token standard that brought fungible tokens to the Bitcoin network, but the protocol claims to be a more efficient implementation of token issuance.
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