In the latest news, CEO of Marathon Digital Holdings, Fred Thiel, shared his insights on several key aspects of the Bitcoin landscape, focusing on transaction fees, hash rate elasticity, and global expansion plans. Thiel emphasized the conditions of Bitcoin transaction fees, noting that the need to prioritize processing of large payloads would increase fees. He highlighted that the volume of transactions in the memory pool is a major driving factor, with various value-added services built on top of basic transaction fees. Thiel likened it to a tiered system, where top-tier services ensure the finality of transactions, while lower-level services operate on less specific foundations. Thiel predicted that over time, transaction fees will surpass block subsidies, especially as block subsidies continue to decrease.
Discussing the elasticity of Bitcoin’s hash rate, Thiel pointed out that while a significant drop is expected after halving, the actual decrease may not be as severe. He attributed this elasticity to the announcements of both public and sovereign miners. Thiel anticipated that as new sovereign nations and other private entities enter the mining space, public miners will consolidate and hold a smaller proportion of the global hash rate, diluting the overall share held by public miners.