Mining and transaction fee is the same?
Mining is keeping the ledger?
Yes the transaction fee you pay goes to the miner who confirms your transaction into a blockMining and transaction fee is the same?
Mining is keeping the ledger?
The total number of bitcoins that will ever be produced is 21 million.So the total number of bitcoins remains the same across time
I thought miners somehow find new bitcoins and the number of bitcoins increases over time.
Bitcoins are created each time a user discovers a new block. The rate of block creation is adjusted every 2016 blocks to aim for a constant two week adjustment period (equivalent to 6 per hour.) The number of bitcoins generated per block is set to decrease geometrically, with a 50% reduction every 210,000 blocks, or approximately four years. The result is that the number of bitcoins in existence is not expected to exceed 21 million.[2] Speculated justifications for the unintuitive value "21 million" are that it matches a 4-year reward halving schedule; or the ultimate total number of Satoshis that will be mined is close to the maximum capacity of a 64-bit floating point number. Satoshi has never really justified or explained many of these constants.
This decreasing-supply algorithm was chosen because it approximates the rate at which commodities like gold are mined. Users who use their computers to perform calculations to try and discover a block are thus called Miners.
The current block reward is 12.5 bitcoins, when a miner successfully mine a block get 12.5 bitcoin as reward and the transactions fees, block reward reduces 50% every 210000 blocks aprx 4 yearsSo the total number of bitcoins remains the same across time
I thought miners somehow find new bitcoins and the number of bitcoins increases over time.
By the time that happens the usage should be large enough for the miners to make enough of a heap of little fees per transaction.So when there will be no new bitcoins mined, the transaction fees are going to increase a lot, so that the miners will have enough motive to work.
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