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Basically I'm looking for this graph, but denominated in BTC https://www.blockchain.com/charts/miners-revenue or this graph plus the block reward https://www.blockchain.com/charts/transaction-fees

I've searched a bunch but can't find anything, maybe I am using the wrong search terms

Motivation

As I understand it, a key metric for the security of the bitcoin network is the ratio of A / B, where:

  • A is total miner revenue per unit time (e.g. year). This is made up of transaction fees plus the block rewards, and is denominated in BTC.
  • B is total number of circulating bitcoins.

The higher this ratio, the higher the network security, because miners are incentivized to keep mining and collect revenue in form of block rewards and transaction fees.

If the ratio gets too low, then it becomes profitable for miners (or mining pools) to instead band together, borrow a large percentage of circulating bitcoin, and repeatedly double spend all their bitcoin into fiat.

To use an extreme example for demonstration: if we get to 2140 when the block reward will be zero, and no-one is paying transaction fees, then miners get no revenue from mining and would find it more profitable to perform a double spend attack.

B is slow-changing if we just consider new block rewards and ignore bitcoins that are "lost", so it probably be sufficient to just track A as a proxy for A / B.

Please do let me know if I'm missing something above, I want to learn!

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I know two websites which can be used to check miners revenue per day (in BTC):

  1. Glassnode Studio: https://studio.glassnode.com/metrics?a=BTC&category=Miners&m=mining.RevenueSum&mScl=lin&s=1294012800&u=1594079999&zoom=

You can't see recent dates in it for 2021 as free plan limits access to recent data for certain metrics. Either you can upgrade your account to see most recent data or try 2.

glassnode-miners-revenue

  1. Tradingview:

    • Open https://www.tradingview.com/symbols/QUANDL-BCHAIN/MIREV/ which is miners revenue per day in USD
    • Click on "full featured chart"
    • Switch to weekly time frame and line chart (log scale)
    • Click on "compare" and add BTCUSD (Bitstamp) chart
    • Check the values in both line charts on any given day. Example: 33234107 and 35000 on 5 July 2021

tradingview-miners-revenue

Calculation: 33234107 / 35000 = 950 BTC

As I understand it, a key metric for the security of the bitcoin network is the ratio of A / B, where: A is total miner revenue per unit time (e.g. year). This is made up of transaction fees plus the block rewards, and is denominated in BTC. B is total number of circulating bitcoins.

I am not sure about B. I look at FRM which is Miner Revenue [Block Reward + Transaction Fees] / Transaction Fees. Agree that transaction fees are important in long term for Bitcoin.

To use an extreme example for demonstration: if we get to 2140 when the block reward will be zero, and no-one is paying transaction fees, then miners get no revenue from mining and would find it more profitable to perform a double spend attack.

If no-one is paying transaction fees, no one is using Bitcoin so it will be a failed experiment IMO. I cannot predict future and it will be wrong to assume anything although it looks less likely that there will be no transactions.

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  • Thank you Prayank! That graph looks quite concerning. Fees are not at all making up for decreasing block reward.
    – Alex Macx
    Jul 7 at 21:23
  • Miners pay everything in USD. So nothing concerning at this moment. Yes fees could be higher but we don't know what's the right fees (in BTC) per day. Maybe it was overpaid in past or underpaid right now.
    – Prayank
    Jul 12 at 4:35
  • It is concerning from the perspective of a short seller attack, no? The relevant variable there is revenue or a short seller attack vs future mining revenue. Both are in BTC so the conversion rate to USD cancels out.
    – Alex Macx
    Jul 13 at 22:32

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