Cryptocurrencies
Bitcoin Miners Fee Decline Seen Raising Risk of Forced Selling, Kaiko Says
- Lower network fees, block rewards hamper miners, Kaiko says
- Miners may look to sell Bitcoin holdings and consolidate
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Lower network fees and reduced rewards for mining Bitcoin raises the risk of forced selling of the digital asset by companies that compete to validate the cryptocurrency’s transactions, according to a report from Kaiko Research.
Fees have decreased to an average price between $3 and $5, down from around $45 in January, Kaiko data show. In April, a code update referred to as the halving reduced the block rewards received for solving complex equations to process the transactions to 3.125 Bitcoin from 6.25 Bitcoin.