<p>This was <a href="http://bitcointalk.org/index.php?topic=100565.msg1100141#msg1100141" rel="nofollow">described</a> as showing the difference between transaction fees and the bitcoin miners income from block rewards.</p>

<p>So if a Block has 25 BTC generated and 1 BTC of fees, the network deficit would be 24 BTC.  The amount in USDs is calculated at the spot rate at the time.</p>

CC BY-SA 3.0
2013-04-26T08:41:45.837Z
2013-04-26T08:41:45.837Z
Stephen Gornick
<p>I've seen this graph pop up around the interwebs, but never with an explicit explanation:</p>

<p><a href="http://blockchain.info/charts/network-deficit" rel="nofollow">http://blockchain.info/charts/network-deficit</a></p>

<p>My question is how is this metric generated? Is it a comparison of the power and hardware costs versus returns?</p>

<economic-theory>
How is Network Deficit Calculated?
Charles Hoskinson
# How is Network Deficit Calculated?

(Asked by: username_0 on 2013-04-26)

I've seen this graph pop up around the interwebs, but never with an explicit explanation:

<http://blockchain.info/charts/network-deficit>

My question is how is this metric generated? Is it a comparison of the power and hardware costs versus returns?

**Tags:** economic-theory


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## 1 answers

### Answer by username_1 on 2013-04-26. Score: 2 | Accepted answer

This was [described](http://bitcointalk.org/index.php?topic=100565.msg1100141#msg1100141) as showing the difference between transaction fees and the bitcoin miners income from block rewards.

So if a Block has 25 BTC generated and 1 BTC of fees, the network deficit would be 24 BTC. The amount in USDs is calculated at the spot rate at the time.


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