Why read about bitcoin mining if you can learn by watching and listening to the process being explained to you in simple terms?
What is Bitcoin Mining?
The video will teach you how new coins are generated, and what kind of hardware is required. The narrator talks about mining pools, the profitability of mining, mining difficulty, block times, block rewards, and more.
The video is a few years old and the mining rewards have been halved in the meantime, but you will get to gist of it.
Topic: How Bitcoin mining works? (Read 129 times)
Miners don't get money directly.
They get BTC and have to sell them if they want money.
Those BTC come from 2 sources.
1 Transaction fees - the fee paid by transaction sender goes to miners.
2 Block reward - fixed amount of BTC for each block miner generates.
The 1st part are already existing bitcoins.
The 2nd part comes out of thin air. Its newly generated (created) coins. Call it supply.
Once all 21mil. BTC gets mined they will get only the 1st part.
They get BTC and have to sell them if they want money.
Those BTC come from 2 sources.
1 Transaction fees - the fee paid by transaction sender goes to miners.
2 Block reward - fixed amount of BTC for each block miner generates.
The 1st part are already existing bitcoins.
The 2nd part comes out of thin air. Its newly generated (created) coins. Call it supply.
Once all 21mil. BTC gets mined they will get only the 1st part.
but how the Miners gets their money, who paid them?
There is no centralized authority to "pay" miners in a decentralized network. There is a reward that can be claimed for finding a new block that the miner has to claim themselves.It basically works like this:
The miner builds a new block to start mining it, for that they include as many transactions as possible in that block while building a special transaction known as coinbase and in that transaction they pay themselves up to a certain amount that is determined based on the block height (for example block 679648 can have up to 6.25BTC reward) plus up to the sum of all transaction fees inside that block.
but how the Miners gets their money, who paid them?
Actually, it pools who can pay them through different ways of payment PPS,PPS+, PPLNS and FPPS.
Pools like an operator where you can mine BTC and get paid depends on your miner's hashrate shares.
List of mining pool here https://miningpoolstats.stream/bitcoin
You can also mine solo without any 3rd party pool but you only have less chance to mine a block if you only have one miner or small mining farm.
As anybody can become a Bitcoin miner by running softwares with a special hardware.
but how the Miners gets their money, who paid them?
Miners get their payment when a block is completed.The mining app or software goes out to the blockchain and grabs packets of transaction information, and runs the necessary process to confirm the transaction. but how the Miners gets their money, who paid them?
As anybody can become a Bitcoin miner by running softwares with a special hardware.
but how the Miners gets their money, who paid them?
but how the Miners gets their money, who paid them?
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