So What if the Revenue From Bitcoin Mining is Low?

So-What-if-the-Revenue-From-Bitcoin-Mining-is-Low

Bitcoin miners are experiencing record-low Revenue. Miners earn Revenue from two sources: protocol-integrated subsidies and transaction processing fees. However, Bitcoin miners rely heavily on block subsidies to generate revenue; block subsidies account for more than 90% of their revenue. Since August 2021, their monthly revenue has consistently exceeded $1 billion, but in May-June 2022, it fell below $1 billion. Therefore, maintaining Bitcoin's security (approximately measured by total miner revenue in USD) at current levels over the long term is contingent upon (1) generating more aggregate transaction fees, via the network, (2) sustained increases in BTC's price, or (3) lower mining costs or a combination of these three factors. For instance, if Bitcoin's total transaction fees remain unchanged, the BTC price must double every four years for miner income to remain constant. It would be interesting to see how miners tackle it if the BTC price slips below $10k.