Galaxy Digital, a cryptocurrency investment firm, estimates that the bitcoin NFT sector will reach $4.5 billion in value by 2025. The research department of cryptocurrency investment firm Galaxy Digital has analyzed non-fungible bitcoin tokens that have attracted a lot of attention recently. What are fungible bitcoin tokens?
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They Can Reach $4.5 Billion
Galaxy Digital predicts that NFT bitcoins will become a big business. The study predicts the market will reach $4.5 billion by 2025. The study also notes that recent discoveries have revealed a wider range of bitcoin applications. According to experts, non-fungible tokens also have the potential to significantly increase Bitcoin’s cultural significance.
1.5 Million Wasted Transaction Fees
Another advantage of Bitcoin-based NFTs is the benefit to miners. Recently, the growing demand for Bitcoin-related non-fungible tokens has led to an increase in miners’ income. Since the beginning of February, a month ago, commissions paid to miners for these NFTs have exceeded $1,500,000.
Transaction Fees Are Still A Big Problem
This allows miners to reinvest their profits in transaction fees. In this regard, the paper predicts that transaction fee revenue from NFTs will increase, which will help transaction fees become the main source of revenue for miners, rather than Block Rewards. As is well known, Block Rewards in Bitcoin expire after 21 million blocks have been mined. The effectiveness of transaction fees as compensation for miners who can no longer earn Block Rewards has sparked controversy.
NFT Market Growth Continues Unabated
According to the researchers, while this new use case offers new development opportunities, it also raises critical questions about Bitcoin’s future. Some Bitcoin users are now concerned about decentralization.
It is worth noting that many companies outside of Galaxy believe that the growth of the NFT market will not be hindered.
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