This year marks a notable trend in the world of Bitcoin: a slight increase in security budget as a percentage of market capitalization, from 1.8% to 1.9%. This is the first time in Bitcoin history that the budget miners receive for securing the network increases in proportion to market capitalization.
The reason behind this increase is twofold. First, annual transaction fees have increased significantly, from 5,375 BTC in 2022 to over 21,970 BTC in 2023. This indicates increased activity within the network. In addition, there is an increase in total block rewards, from 337,799 BTC in 2022 to over 354,470 BTC in 2023.
This will be the first year in Bitcoin’s history where the annual security budget as % of market cap will be higher than the year before (from 1.8% to 1.9%)
The security budget is the amount miners earn for securing the network. When this value is high, 51% attacks are expensive… pic.twitter.com/SENU45AYhf
— Kofi (@0xKofi) December 26, 2023
This increase in the security budget is important for Bitcoin’s stability. It makes potential 51% attacks, where someone tries to gain control of more than half of the network’s computing power, more costly and therefore less attractive.
It will be interesting to see how this increase will impact the overall security and valuation of Bitcoin in the future. With a current security budget of more than $1.55 billion this month, the budget is approaching the all-time high of $1.96 billion from April 2021.
2023-12-30 18:26:39
#Bitcoins #Security #Budget #Miner #Revenue #Grows #Steadily #Bitcoinmagazine.nl
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