• FaceDeer@kbin.social
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    1 year ago

    Bitcoin is inflationary, it’s generating new Bitcoin with every block and issuing that to the miners. That new Bitcoin combines with the transaction fees to pay the miners.

    • BCsven@lemmy.ca
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      1 year ago

      So mining is the bulk cost not the transactions. because my last bitcoin fee was like $10 or something

      • FaceDeer@kbin.social
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        1 year ago

        Yes. If you’re wanting to know how many resources mining a transaction takes, that’s the value you need to look at. The block reward effectively goes into subsidizing the transaction fees that are being paid.

    • JWBananas@startrek.website
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      1 year ago

      Bitcoin is deflationary. There is a hard limit on the total number of bitcoins that will ever exist. Every so often, the reward for mining a block is halved. Eventually there will be effectively zero reward for mining at all.

      • FaceDeer@kbin.social
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        1 year ago

        Maybe in the long run. However, when you want to actually calculate how much each transaction costs, you need to account for the fact that right now Bitcoin is inflationary. It won’t stop issuing new tokens until around 2140 AD, assuming no hard forks happen to modify that issuance strategy in the meantime.