Bitcoin Mining Competition Soars Despite Declining On-Chain Activity – Decrypt

In the company’s weekly on-chain update, it analyzed investor behavior amid Bitcoin’s latest price slump.

“We are yet to see a convincing influx of new users or demand,” the report said.

As such, transaction fees have been nearing all-time lows since last May, reflecting a lack of competition for block space among Bitcoin traders.

Theoretically, this would push down incentives for mining Bitcoin, as miners earn less profit per block.

Bitcoin miners use computing power to race to solve the next block, and they profit by earning newly minted Bitcoin and/or from the associated transaction fees.

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