Who are miners in Bitcoin and what do they get paid for?

Miners are participants in the Bitcoin network who confirm transactions and add them to the blockchain.

What do they do

1. Gather new transactions into a block.

2. Solve a complex mathematical problem (Proof-of-Work).

3. The one who decides first adds the block to the network.

For what the miner gets paid

The miner has two income streams:

1) Block reward (creation of new BTC)

The system automatically creates new bitcoins and gives them to the miner.

After the 2024 halving, the reward is 3.125 BTC per block.

2) User fees

All transactions in the block contain fees.

These fees are also collected by the miner.

Specific example

Let's say in the block:

Reward: 3.125 BTC

Fees: 0.5 BTC

Total income for the miner is:

3.625 BTC

If the price of BTC = 60,000$

so income per block = 3.625 × 60,000$ = 217,500$

A block is created approximately every 10 minutes.

Important fact

A total of no more than 21 million BTC will be created.

Over time, the reward decreases.

In the future, miners will only earn from fees.

This is the economic model of Bitcoin:

New coins + fees = incentive to support the network.