Why are there mining fees (can low mining fees never reach the account)?
Why are there mining fees? Bitcoin block rewards are fixed, but mining fees are
Why are there mining fees? Bitcoin block rewards are fixed, but mining fees are not. This is because in the world of blockchain, mining a new block requires paying a certain fee (which means that after you send a transaction, you will receive the corresponding Bitcoin). So why are the fees so high? It’s actually the cost of network bandwidth and computational resources consumed by the network, and the cost is what miners charge users for their computing power. This is why the cost of these mining machines is relatively high. Therefore, when we mine, we need to pay in order to complete the mining process, which can save a lot of electricity, time, and manpower. Of course, if this process takes a long time and cannot be sustained for too long, then for those who want to bundle coins at low prices, it is still advisable to consider paying some fees. As for other miners, they do not need to pay, they only need to provide services.
Can low mining fees never reach the account?
Editor’s note: This article is from BlockBeats (ID: blockbeats), written by 0x29, authorized to be reprinted by Odaily. In the past few weeks, while the price of Bitcoin has continued to decline and mining costs have risen, mining fees have remained below normal transaction fee levels. According to BitInfoCharts data, as of the week ending November 18, the Bitcoin network had a total of 2 transfers, totaling about 55,000 BTC, with an average single transaction amount of about $50. On Ethereum, an average of 1 ETH is generated per hour, worth over $30 million. However, both wallets have a large amount of ETH, BCH, and other cryptocurrencies that have been consumed. The most famous example is the Litecoin address of Litecoin founder Li Qiwei. These users send ETH to exchanges and exchange it for LTC to pay fees and profit from the price difference. “We already know that if one day you need to recharge USDT to your account, it will become a small fund pool,” explained an anonymous industry insider. “Because many mining machine manufacturers cannot handle their business problems, they cannot perform any services, such as buying mining machines with stablecoins, etc.” “I think if you want to put money in the bank, you have to deposit 100 BTC as interest,” he said. “So if you spend 1000U, you can get back 300 US dollars in Bitcoin and then go to buy other things or directly sell to someone.” Some netizens also expressed, “This is a situation where even users who are not ready to accept this payment can only choose to use this number for transactions.” Some people have also pointed out the fact that “people are unaware of this number and may find it strange, after all, everyone wants a higher price, not cheaper services… Of course, there are other reasons that can make mining fees too expensive and may never reach the account!” In addition, some netizens commented that due to the current good market conditions, some large miners have had to readjust their operational strategies and reduce their sources of income, resulting in peak mining costs.
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