Blockstream’s CEO, Adam Back, recently pointed to a major surge in JPEG files that have been inscripted on the Bitcoin blockchain, which has been causing concerns about the network’s effectiveness and utility.
In a recent X post, Adam Back pointed out that between May and September 2025, JPEGs on Bitcoin’s blockchain grew 20%, from 88 million to 105 million. The associated transaction fees amounted to about 7,000 bitcoin (BTC), or $700 million at a Bitcoin price of $100,000, averaging about $8 per JPEG. Most of these JPEGs are stored using a feature called Taproot inscriptions.
On the Bitcoin blockchain, “JPEG inscriptions” refer to storing these image files directly in transactions, which allows them to be permanently recorded on the network but can also increase transaction fees and take up space.
How Bitcoin Handles Spam?
Back explained that miners only provide computing power; they can’t change the Bitcoin protocol rules. The real control comes from “economic nodes,” which are run by users. The block-size wars showed that the market decides, not miners. He emphasized, “Users said NO via the economic force of the market. Miners followed.”
He also shared that JPEG spam on Bitcoin mainly comes from image sellers, buyers, and VCs funding the activity. Miners collected roughly $250 million per year from these fees, which is about 1.5% of the total fee market. Spam also pushes up block costs slightly, but only adds about 0.1% to a miner’s profit once costs adjust, so it’s not a major focus for miners.
Reducing JPEG Spam
Back stressed that any action against spam must make economic sense and focus on outcomes. “To prevail, we have to make economic sense (or we work against our own objectives).” The goal is to reduce wasteful activity without harming Bitcoin’s core value.
Even though the JPEG business counts as economic activity, it’s wasteful. It pushes up transaction costs, making Bitcoin harder for new users to use. There are better places to store images, like Imgur or IPFS.
Adam Back suggested ways to reduce JPEG spam on Bitcoin. He said miners could be encouraged to avoid including JPEGs by choosing mining pools that don’t process them. Another approach is adjusting transaction fees so spam becomes unprofitable.
He also mentioned educating miners about the negative publicity it can create. However, he cautioned that some of these approaches might lead to centralization risks, and any solution needs to be implemented carefully.
Also Read: Public Companies Now Hold Over 1 Million Bitcoin in Reserves
