As previously stated, the whole timestamp server and blockchain is supported when someone is confirming the transactions through proof of work. But what motivates these “miners”? Block rewards.
You see, whenever a blocks proof of work is successfully satisfied, the minor is rewarded coins. Bitcoins typical block reward is 50 coins, but every 4 years the block reward cuts in half, leaving us with the current block reward of 25 coins.
There is also a hard set limit of 21 million coins ever to be created. But we will still need miners to confirm and verify transactions on the blockchain long after all 21 million coins are made. So what will keep them motivated to continue to use compute power and electricity?
Transaction fees. Now at first, you’re saying to yourself, “You said there are no fees”. That is correct, but if you’d like to put your transaction in a higher priority, you may attach an optional fee known as the “Miners Fee”. This fee is very small, even with high priority fees usually being less than $0.40.
If mining is not your thing, but you would still like to get into Bitcoin, then perhaps buying them outright is more of your thing.
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