tag:blogger.com,1999:blog-4503292949532760618.post8547681813954624630..comments2024-03-28T02:31:38.608-07:00Comments on DSHR's Blog: Fixed Supply, Variable DemandDavid.http://www.blogger.com/profile/14498131502038331594noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-4503292949532760618.post-41773671251628357762023-06-06T11:11:07.213-07:002023-06-06T11:11:07.213-07:00Sidhartha Shukla reports that Bitcoin Coders Feud ...Sidhartha Shukla reports that <a href="https://www.bloomberg.com/news/articles/2023-06-04/bitcoin-btc-developers-feud-over-ending-ordinals-memecoin-frenzy" rel="nofollow"><i>Bitcoin Coders Feud Over Whether to Crush $1 Billion Frenzy for Memecoins</i></a>:<br /><br />"The coders who maintain Bitcoin’s blockchain are clashing over whether to stamp out the meme tokens swarming the network.<br /><br />A torrent of speculative coins led to a record number of transactions and an 11-fold spike in processing fees on the blockchain in May, creating a logjam and forcing the Binance exchange to temporarily halt Bitcoin withdrawals.<br /><br />The tumult has since eased, but some crypto purists fret that future frenzied trading of memecoins like the frog-themed Pepe will again snarl the network and disrupt Bitcoin’s use for payments and as a store of value. They advocate deploying software to block the transactions — a kind of spam filter.<br />...<br />At one point last month meme tokens and NFTs accounted for 65% of the transactions on the Bitcoin blockchain. The proportion has dropped back but remains elevated. The average fee per transaction began April at $2.80, hit $30 in early May and cooled to $4 by the end of the month, Coinmetrics data show."David.https://www.blogger.com/profile/14498131502038331594noreply@blogger.comtag:blogger.com,1999:blog-4503292949532760618.post-83661911948632586542023-05-22T10:40:22.143-07:002023-05-22T10:40:22.143-07:00Just as they did to Ethereum, NFTs are spiking tra...Just as they did to Ethereum, NFTs are spiking transaction fees for Bitcoin, as Sidhartha Shukla and David Pan report in <a href="https://www.bloomberg.com/news/articles/2023-05-21/memecoin-mania-and-nfts-bring-a-seismic-shift-for-bitcoin-btc-mining" rel="nofollow"><i>Memecoin Mania and NFTs Bring a ‘Seismic Shift’ for Bitcoin Mining</i></a>:<br /><br />"An eruption of memecoins and nonfungible tokens on the Bitcoin blockchain has reshaped the revenue profile of miners and stirred questions about how lasting the upheaval will prove to be.<br />...<br />The NFT and meme-token craze spurred record transactions and an ensuing fee windfall for miners, who run the computers underpinning Bitcoin. At one point in May, transaction fees made up over 40% of revenues, whereas miner income is usually dominated by the new Bitcoin they get for securing the blockchain."<br /><br />How long will this last? Not long. Average fees per transaction were $3 on 30th April, hit $30 on 6th May, on 20th May they were $4.<br /><br />"For now, Ordinals is helping to fuel renewed investor enthusiasm for Bitcoin miners. The 20-member MVIS Global Digital Assets Mining Index is up 110% so far in 2023, outstripping Bitcoin’s 74% advance.<br /><br />The application of ordinals is “completely rewriting how people think about mining profitability,” said Colin Harper, head of content and research at crypto-mining services provider Luxor Technologies."<br /><br />Good luck with that.David.https://www.blogger.com/profile/14498131502038331594noreply@blogger.comtag:blogger.com,1999:blog-4503292949532760618.post-82429709229764901652023-05-08T19:44:04.451-07:002023-05-08T19:44:04.451-07:00Ethereum user pays 64 ETH ($118,000) transaction f...<a href="https://web3isgoinggreat.com/?id=ethereum-user-pays-64-eth-118000-transaction-fee-on-84-eth-155000-swap" rel="nofollow"><i>Ethereum user pays 64 ETH ($118,000) transaction fee on 84 ETH ($155,000) swap</i></a> by Molly White captures the insanity:<br /><br />"A recent surge in memecoin popularity has caused Ethereum transaction fees to skyrocket. One trader paid the price, eating a 64 ETH ($118,000) transaction fee just to perform a simple swap of 84 ETH to another token."<br /><br />And <a href="https://www.blockchain.com/explorer/charts/fees-usd-per-transaction" rel="nofollow">Bitcoin's average fee per transaction</a> is currently about $30. At the end of last month the <a href="https://www.blockchain.com/explorer/charts/cost-per-transaction-percent" rel="nofollow">average cost as a percentage of transaction volume</a> was around 3%, nearly as much as the highest credit card merchant fees.<br /><br />Cryptocurrency transactions are only affordable when no-one else wants to transact. When everyone does ...David.https://www.blogger.com/profile/14498131502038331594noreply@blogger.comtag:blogger.com,1999:blog-4503292949532760618.post-46564715518122778842022-10-16T15:46:37.275-07:002022-10-16T15:46:37.275-07:00Molly White reports on another instance of low tra...Molly White reports on another instance of low transaction fees enabling a blockchain to be DDoS-ed in <a href="Zcash%20continues%20to%20suffer%20from%20spam%20attack%20that%20started%20months%20ago" rel="nofollow"><i>Zcash continues to suffer from spam attack that started months ago</i></a>:<br /><br />"Since June or July, the network has been suffering from a spam attack in which attackers have been submitting massive transactions that quickly fill up block space. The chain has exploded in size, nearly tripling to more than 100GB since the attack began. Unlike other chains which are prohibitively expensive to attack, each spammed transaction costs less than a cent, and the attacker is estimated to be spending roughly $10 a day to execute the attack."<br /><br />David Thomas asks <a href="https://beincrypto.com/are-monero-developers-behind-the-latest-zcash-attack/" rel="nofollow"><i>Are Monero Developers Behind the Latest Zcash Attack?</i></a>:<br /><br />"While the motive of the attack has not yet been determined, bax1337 of Convex Labs <a href="https://twitter.com/bax1337/status/1577655114462003208?s=20&t=oEwyGSXcM5hp4dU_ophZIA" rel="nofollow">believes</a> that the goal is to bring Zcash into disrepute through nodes failing because of memory, performance, and synchronization issues. Additionally, potential node operators could be discouraged from participating in the network, making the blockchain susceptible to surveillance or so-called Eclipse attacks."David.https://www.blogger.com/profile/14498131502038331594noreply@blogger.com