Fractal Bitcoin: good or bad for mining revenues?
August 2024 represented the worst month for Bitcoin mining revenue since September 2023, with $827.56 million in fees generated.
Fractal Bitcoin—a sidechain scaling solution for Bitcoin (BTC) that uses the Bitcoin core code—could potentially provide miners with an additional source of revenue. Conversely, fractal Bitcoin could end up slashing mining revenues.
According to TheMinerMag, Fractal Bitcoin is merge-mined alongside Bitcoin—meaning that the same mining hardware can simultaneously mine Bitcoin and Fractal Bitcoin. This could be an attractive and much-needed avenue for Bitcoin miners to bolster profits in the post-halving environment, without having to retool facilities for AI or high-performance computing.
However, the knife cuts both ways. Because Fractal Bitcoin supports the BRC-20 token standard and promises to be a faster, cheaper scaling solution for the Bitcoin base layer, this could reduce network fees created by demand for non-fungible tokens on the Bitcoin network, which translates to a reduction of miner profits.
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Author: Vince Quill
