These two companies manufacture equipment for mining cryptocurrencies. What's more certain is Bitcoin miners continuing to increase their computing power, creating a booming business opportunity for Canaan and Ebang. Simply put, there's a lot of variables in play making it hard to predict what revenue will look like for these companies. That said, it's all relative since they're paid in Bitcoin, not dollars. If Taproot speeds things up, fees could plummet even further, resulting in less revenue for some of these mining companies. Transaction fees have fallen sharply in recent weeks but are still historically high at over $6 per transaction. But miners also make money from transaction fees, which have spiked significantly higher over the past year.īitcoin Average Transaction Fee data by YCharts We often discuss how miners are rewarded with 6.25 bitcoins for every block they mine - this is one way companies like Riot Blockchain and CleanSpark make money. The ripple effect that Taproot could have for Bitcoin miners is unclear right now. But also, Taproot will allow developers to build onto the Bitcoin blockchain like they already can on blockchains like Ethereum, which could be a game-changing update. Important changes include the ability for speedier transaction processing - basically the data on the blockchain should get smaller, making it speedier and less energy intensive. And on Saturday, over 90% of miners had signaled support for Taproot, the support level needed to make it happen.Īccording to many developers, the Taproot update should go into effect for Bitcoin in November. Once enough miners have "voted" in favor of changes, the blockchain network is ready for the upgrade. But developers only propose ideas - miners have to signal support for the proposals by putting a marker on the blocks they process. On June 12, Bitcoin developers and miners took a big step forward in addressing this scalability problem. Developers have come up with a package of upgrades for the Bitcoin blockchain called Taproot. This is due to how information is processed and recorded on the blockchain. You see, right now Bitcoin is limited with how much volume it can handle, and normal payment volume for an entire economy would be too much. As of this writing, Riot Blockchain ( RIOT -3.14%) stock was up 13%, Canaan ( CAN 3.98%) was up 8%, CleanSpark ( CLSK -3.64%) was up 9%, and Ebang International Holdings ( EBON -5.07%) was up 13%.īut what if people did want to digitally transact more with Bitcoin in the future? That could be a problem. So far for the week, MicroStrategy stock is up 21%.Īnd with the price of Bitcoin rising, stocks that benefit from mining are also up for the week. And considering how much it owns, it's not surprising to see its stock rise with the price of Bitcoin in recent days. The company is already taking on as much debt as it can to buy more and more bitcoins, as we'll see in a minute. However, it's not as though technology company MicroStrategy ( MSTR -2.53%) needed any more reasons to buy Bitcoin. However, the Bitcoin blockchain is also now officially scheduled to receive an important upgrade, which could be a more long-term demand driver. The first concerns a social media post by Tesla CEO Elon Musk, which may only be a short-term catalyst. EDT on Thursday, according to CoinDesk - up sharply from its weekly low of about $35,000 on Sunday. There were two big news items for Bitcoin over the past week.
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