How does Bitcoin make Money?

Question

How does Bitcoin or any Cryptocurrency make money? What are the possible procedures of making money through bitcoins (cryptocurrencies)?

in progress 0
Paul Smith 4 months 1 Answer 155 views 1

Answer ( 1 )

  1. Summary: There are no “owners” of bitcoin. It is like a protocol or algorithm. It’s free and open source. However, there are people who make money by “mining”.

    Bitcoins are awarded to Bitcoin “miners” for the solution to a difficult work which confirms transactions and prevents double-spending.

    Miners can also get extra bitcoins from voluntary transaction fees. In every transaction, it is recommended to pay a tiny fee so that miners will have an incentive to actually compute your transactions in the next block. Without a miner to verify your transactions, there is no way you or your payee can ensure that the bitcoins transferred are valid.

Leave an answer

Browse
Browse

By asking your question, you agree to the terms of service and Privacy Policy.