Bitcoin Halving History Sees Users Spending Record $2.4M in Fees

Investors Spend Record Amount for 2024 Halving Block

Investors spent more than 37.7 Bitcoin, worth $2.4 million, in fees to claim their spot on the 2024 Halving Block, making it the most expensive block ever mined.

Bitcoin Halving Event Triggers Reduction in Mining Rewards

On April 20, at 12:09 p.m. UTC, Bitcoin miner ViaBTC generated the 840,000th block, triggering an automated protocol that cuts per-block Bitcoin (BTC) emissions in half. The event, known as the Bitcoin Halving, saw mining rewards cut from 6.25 BTC to 3.125 BTC.

Record Revenue and Fees Surrounding the Halving

Revenue earned from Bitcoin mining reached record heights on the day of the halving, hitting $107.7 million in daily earnings as community members willingly paid extortionate fees to get their transactions recorded on the 840,000th Bitcoin block.

This resulted in a total of $2.4 million in fees as users competed for the most valuable piece of digital real estate in Bitcoin history.

Introduction of Runes Protocol and Its Impact

The new Runes Protocol, developed by Bitcoin Ordinals creator Casey Rodarmor, was the main source of the influx of activity during the halving. Runes have been marketed as a more efficient way to create new tokens on the Bitcoin network compared to the BRC-20 token standard.

Runes Protocol Features

• Uses the Unspent Transaction Output (UTXO) model
• Allows users to inscribe individual satoshis with unique identification numbers
• Embeds arbitrary data directly into Bitcoin’s blockchain

Impact on Bitcoin Mining Rewards

Following the halving, many crypto miners have experienced a decrease in mining rewards. However, the Runes Protocol has helped offset this drop, according to pseudonymous Ordinals developer Leonidas.

Positive Future for Bitcoin Mining Operations

Despite the initial impact of the halving on mining operations, aggregated data shows a positive future with a total of $3.82 million in fees spent on the five blocks following the event.