Bitcoin transaction fees will surpass block subsidy predicts Marathon CEO Fred Thiel Mining 3 days ago

In a recent interview with CryptoSlate at BTC Prague 2024, Fred Thiel, CEO of Marathon Digital Holdings, shared his insights on several critical aspects of the Bitcoin landscape, focusing on transaction fees, hash rate resilience, and global expansion initiatives.Thiel highlighted the conditions of Bitcoin transaction fees, noting that large payloads requiring prioritization drive higher fees. He emphasized that transaction volume in the mempool is the primary driver, with various value-added services built on top of base transaction fees. Thiel likened it to a tiered system, where first-class services guarantee transaction finality and lower-tier services operate on a less specific basis. Thiel predicts that over time, transaction fees will surpass the block subsidy.“transaction fees will surpass the block subsidy, especially as the block subsidy continues to decrease”.Addressing the resilience of the Bitcoin hash rate, Thiel pointed out that despite predictions of a significant drop post-halving, the actual decline was less severe. He attributed this resilience to the growth announcements from both public and sovereign miners. Thiel expects public miners to consolidate and form a smaller percentage of the global hash rate due to the entry of new sovereigns and other private entities into the mining space, which would dilute the overall share held by public miners.Thiel also discussed Marathon’s expansion into Kenya and the UAE. He explained that these initiatives involve strategic partnerships at the sovereign level, leveraging unused energy resources to create foreign direct investments, job opportunities, and governmental revenues. Thiel highlighted the role of the US government, particularly Ambassador Meg Whitman, in facilitating these ventures. He underscored the collaboration with tech giants like Microsoft and Google to enhance these projects.“It’s all really one big initiative, which is to monetize unused energy in Kenya,”The interview also touched on Marathon’s recent inclusion in the S&P 600, noting a solid trading volume and increased institutional investment, with entities like BlackRock acquiring significant stakes. Thiel mentioned that while institutional interest is growing, the company also faces heightened short interest due to its high liquidity.Regarding the political climate, Thiel observed a bipartisan interest in supporting Bitcoin and Bitcoin mining in Congress, contrasting with the executive branch’s stance. He emphasized Marathon’s support for political candidates that are favorable to the digital assets industry.Lastly, Thiel addressed operational challenges, including recent transformer issues that affected their Ellendale site. He stated that the site is now 85% operational and will be entirely online soon.Thiel’s insights reflect Marathon Digital Holdings’ strategic positioning and resilience in the evolving digital assets market.James fervently appreciates data, technology, and trend-spotting. As a tech and liberty maximalist, he hails Bitcoin as the 21st century’s paramount invention.Also known as “Akiba,” Liam is a reporter, editor and podcast producer at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change. Essential crypto updates and analyses. Straight to your inbox, every day.Allaire believes crypto will play a significant role in society and the economy.Perpetual futures volumes seem driven by factors beyond just Bitcoin’s price movements.The statement marks Trump’s latest support for the crypto sector.This is the first proposal for an ETF that aims to give investors combined exposure to both of the largest cryptocurrencies.Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.