Bitcoin enthusiasts were willing to pay a hefty price for their piece of history during the recent Bitcoin halving event. A total of 37.7 Bitcoin, valued at over $2.4 million, was spent in fees to secure a spot on the fourth-ever Bitcoin halving block.
The momentous occasion occurred at 12:09 am UTC on April 20, when Bitcoin miner ViaBTC produced the 840,000th block. This triggered the automated protocol that reduces miner rewards by 50%, from 6.25 BTC to 3.125 BTC per block.
Block 840,000 quickly became the most coveted digital real estate in Bitcoin’s history, with users collectively spending 37.67 BTC on fees, according to data from Bitcoin block explorer mempool.space. Including the miner subsidy of 3.125 BTC, Bitcoin miner ViaBTC received a total of 40.7 BTC, equivalent to $2.6 million, for producing the halving block.
The exorbitant fees were primarily attributed to users rushing to inscribe and etch rare satoshis on the halving block. Much of this activity stemmed from the frenzy surrounding the launch of Casey Rodmarmor’s new Runes Protocol, which coincided with the halving.
Runes Protocol offers a more efficient method for creating new tokens on the Bitcoin network compared to the BRC-20 token standard. While both leverage the Bitcoin network and pay fees in Bitcoin, Runes utilizes the Unspent Transaction Output (UTXO) model to “etch” new tokens, whereas Ordinals uses an “inscription” account model.
In a post on April 20, pseudonymous developer Leonidas claimed that the fees on the five most recent Bitcoin blocks after block 840,000 surpassed the Coinbase reward. The total fees spent on these blocks, excluding miner subsidies, amounted to $3.82 million, according to aggregated data from mempool.space.
Aside from the race to inscribe Runes, Bitcoin mining pools also competed to obtain the first-ever satoshi mined on the halving block, known as an “epic” satoshi. Trevor Owens, the managing partner at The Bitcoin Frontier Fund, even offered a bounty of between $500,000 and $1 million to acquire this historic satoshi.
While the halving event was cause for celebration, it quickly faded into the background as the cryptocurrency community returned to business as usual. Outspoken Bitcoin critic Peter Schiff couldn’t resist taking a jab at Bitcoiners, suggesting that the halving would result in a “halving” of their net worth.
Overall, the Bitcoin halving event showcased the enthusiasm and dedication of its users, who were willing to invest significant sums to secure their place in history.