The miners are incentivized to mine coins because this way they get keep the coins. It is also important to keep that mining fees is paid whenever a transaction is made on the blockchain.
Whenever a user sends or receive coins they pay a small transaction fees. The thing is that when miners solve a block they verify these transactions and thus get to keep that fee. So the logic is that more fees that you pay for the transaction the miners would be further incentived to include that block in the transaction.
So a higher fees usually also has a better chance of getting your transaction cleared sooner.
The basic math is something like this:
Total block Reward = 12.5 BTC + (fee from all the transactions included in the block)
Note: As the block rewards halfen every four years, the block rewards would get smaller and smaller. In the future the miners main incentive to mine would come from the mining fees.
Bitcoin works like a peer to peer network, where everyone in the world is connected by an internet network. Bitcoin is obtained as a reward / reward / reward in the process of solving mathematical problems created and solved by computers on the blockchain network. The process of solving these problems is called mining.
The value of the bitcoin that is on the blockchain is of limited value, but it cannot be used up because the reward can be in the form of a fraction, such as 0.0001 BTC or smaller.
As time goes by, of course the value of Bitcoin obtained will get smaller because of the many problems that have been solved on a blockchain, and the level of difficulty of the problems will increase, so that more sophisticated hardware hardware is needed to solve the problems there is.
Bitcoin is like a normal currency, but it is stored on hardware such as hard disks, and other storage media, it is encrypted and it is very difficult to crack code to break down its security.
If likened to money has stored in the wallet, then bitcoin can also be placed on online wallets that are scattered on the internet, for example coinbase.
Who actually pays for mining done?
Answer:
What pays for mining is money that is invested in the bitcoin network itself. At first people started buying bitcoins that were of no value with the original currency, over time and more and more people who believed in crypto currencies the value went up, this was the basic concept.
For comparison, if you have played online games like Ragnarok Online, there are market activities using Zeny currency, which are used to buy items in the game world, but there are times when the Zeny currency is traded in the real world as well as by fellow gamers, this actually the same as the concept of bitcoin itself. There is a value agreed upon by the buyer and seller to convert it into the original currency.
Miners are very important because they provide an awesome service in terms of so many factors which includes bitcoin network security which makes bitcoin safe from attacks....
miners do need a reward/incentive which they will use to pay for the cost of hardware and electricity which they use for the mining....there is a hardware called ASIC which is a mining hardeare that makes bitcoin become secured through what is called “proof of work”,
miners are usually paid with transactions feees and also bitcoin’s block reward,recently i noticed that bitcoin block rewards are usually large and it is one of the major factor that provides earnings to miners,
previously block rewards are usually around fifty bitcoins per block but currently it is 12.5 bitcoins per block.......
Transaction fees
another fact many people need to understand is that the moment most bitcoins have already been mined,
it means that the block reward would no longer be the major source of earnings for the miners,that is where mining fees will now become more effective,mining fees are the feees which will be paid by users who transact on the network and the mining fee will be the major factor that produces good income for the miner....
mining fees are a kind of fees that a user will pay each time he or she makes a transaction on the network
we also need to note that the fees is an incentive to miners in other for them to include transactions on a block and a transaction is confirmed the moment it is included in a block....
and that is why transactions with higher fees tend to get faster confirmation because of course miners would want to maximize their income so there is higher priority on transactions with higher fees paid....
View this answer on Musing.io
The miners are incentivized to mine coins because this way they get keep the coins. It is also important to keep that mining fees is paid whenever a transaction is made on the blockchain.
Whenever a user sends or receive coins they pay a small transaction fees. The thing is that when miners solve a block they verify these transactions and thus get to keep that fee. So the logic is that more fees that you pay for the transaction the miners would be further incentived to include that block in the transaction.
So a higher fees usually also has a better chance of getting your transaction cleared sooner.
The basic math is something like this:
Total block Reward = 12.5 BTC + (fee from all the transactions included in the block)
Note: As the block rewards halfen every four years, the block rewards would get smaller and smaller. In the future the miners main incentive to mine would come from the mining fees.
Bitcoin works like a peer to peer network, where everyone in the world is connected by an internet network. Bitcoin is obtained as a reward / reward / reward in the process of solving mathematical problems created and solved by computers on the blockchain network. The process of solving these problems is called mining.
The value of the bitcoin that is on the blockchain is of limited value, but it cannot be used up because the reward can be in the form of a fraction, such as 0.0001 BTC or smaller.
As time goes by, of course the value of Bitcoin obtained will get smaller because of the many problems that have been solved on a blockchain, and the level of difficulty of the problems will increase, so that more sophisticated hardware hardware is needed to solve the problems there is.
Bitcoin is like a normal currency, but it is stored on hardware such as hard disks, and other storage media, it is encrypted and it is very difficult to crack code to break down its security.
If likened to money has stored in the wallet, then bitcoin can also be placed on online wallets that are scattered on the internet, for example coinbase.
Who actually pays for mining done?
Answer:
What pays for mining is money that is invested in the bitcoin network itself. At first people started buying bitcoins that were of no value with the original currency, over time and more and more people who believed in crypto currencies the value went up, this was the basic concept.
For comparison, if you have played online games like Ragnarok Online, there are market activities using Zeny currency, which are used to buy items in the game world, but there are times when the Zeny currency is traded in the real world as well as by fellow gamers, this actually the same as the concept of bitcoin itself. There is a value agreed upon by the buyer and seller to convert it into the original currency.
Miners are very important because they provide an awesome service in terms of so many factors which includes bitcoin network security which makes bitcoin safe from attacks....
miners do need a reward/incentive which they will use to pay for the cost of hardware and electricity which they use for the mining....there is a hardware called ASIC which is a mining hardeare that makes bitcoin become secured through what is called “proof of work”,
miners are usually paid with transactions feees and also bitcoin’s block reward,recently i noticed that bitcoin block rewards are usually large and it is one of the major factor that provides earnings to miners,
previously block rewards are usually around fifty bitcoins per block but currently it is 12.5 bitcoins per block.......
Transaction fees
another fact many people need to understand is that the moment most bitcoins have already been mined,
it means that the block reward would no longer be the major source of earnings for the miners,that is where mining fees will now become more effective,mining fees are the feees which will be paid by users who transact on the network and the mining fee will be the major factor that produces good income for the miner....
mining fees are a kind of fees that a user will pay each time he or she makes a transaction on the network
we also need to note that the fees is an incentive to miners in other for them to include transactions on a block and a transaction is confirmed the moment it is included in a block....
and that is why transactions with higher fees tend to get faster confirmation because of course miners would want to maximize their income so there is higher priority on transactions with higher fees paid....