Block #614430, mined by Coingeek, size just under 114 MB, f…
Block #614430, mined by Coingeek, size just under 114 MB, fees just over 1 sat/B...
Revenue was ~9.1% greater than the block subsidy alone.
If a miner, such as the ",mm😊" miner, were to limit themselves to 1 MB blocks, they're giving up ~9% revenue.
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That's ~9% revenue that can be put into more hash power, or more investment in scaling, or whatever else, which pushes you out of the market...
But it's far more than that in % of profits...
Let's say you have an average of 1% profit on a 0 fee block.
That's 12.5 BSV in revenue, implying ~12.376 BSV in total costs.
Now, let's add the ~1.139 BSV revenue for the ~113.9 MB block...
That's ~1.26 BSV profit vs ~0.124 BSV profit without the fees.
Of course, there are certain added costs involved in producing and propagating the larger block... So the end profits are actually lower...
However, isn't it interesting that other miners have to validate and either accept or reject your block still?
In other words, don't they, too, pay those costs? So, either they reject your block (orphaning, if they do so with >51% of hash power,) or they have to pay those costs, diverting funds from their ability to operate hash power...
All of this is to say, miners, it's in your interest to scale as fast as you can, to lower your costs to handle large blocks and to enable you to take more revenue when you mine a block with the potential of including many transactions.
After all, ~1.26 BSV in profits, minus some added costs that you'd have to pay anyways if another miner got that block, is ~10.2x the profits of the ~0.124 BSV you'd have gotten if you were limited to practically nothing in your block like some miners...