• BCsven@lemmy.ca
    link
    fedilink
    arrow-up
    0
    ·
    11 months ago

    So if it costs $65 for a transaction then why isn’t that the transaction fee? people would be loaing money if cost is more than the fees

    • FaceDeer@kbin.social
      link
      fedilink
      arrow-up
      0
      ·
      11 months 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
        link
        fedilink
        arrow-up
        0
        ·
        11 months ago

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

        • FaceDeer@kbin.social
          link
          fedilink
          arrow-up
          1
          ·
          11 months 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.