TCR TOP STORIES
Home / Bitcoin News / INSIDE CRYPTO MINERS EARNING

INSIDE CRYPTO MINERS EARNING

Diar, a forward-looking and digital assets newsletter has noted that Bitcoin and all other types of cryptocurrency miners have made tons of millions of dollars without making any single transactions.

First of all let us know what is cryptocurrency mining, of course, we know it is possible to buy them but, Bitcoin mining creates new cryptocurrency by making new parts of the blockchain. It is a process in which transactions for various forms of cryptocurrency are verified and added to the blockchain digital ledger. So, Diar points out that miners of major cryptocurrencies such as Bitcoin, Litecoin, Ehter, and others have earned in excess of $18 million.

The issue states that Bitcoin cash miners have processed around 3,300 empty blocks since August 2017. Around $5 million on average is earned around all networks. Bitcoin and Ethereum have the fewest number of empty blocks and moreover, they are the most famous. Diar says that the miners are doing nothing and earning millions without any transactions.

Litecoin has the largest number of empty blocks due to faster block time and network underutilization. Litecoin boasts a two minute time. The miners earn two types of income one is the mining reward and other is the processing fee. Mining reward can be said to be the cost to the network and the processing fee is the one that miners earn to process the transaction.

The empty blocks have thus ensured that empty blocks and full house are all selling at the same price. These problems are going to create inflation apart from the extreme environmental damages that mining causes. This is creating difficulties for the mining and crypto market as a whole and the problems are expected to rise in the future when the empty blocks, as well as the full houses, will be selling at the same prices.

 

Check Also

Bakkt Increase Its Series A at Valuation Topping $700 Million

Bakkt, ICE’s yet-to-launch crypto exchange, is being valued at around $740 million following its Series. …

Leave a Reply

Your email address will not be published. Required fields are marked *

Please wait...

Subscribe to our newsletter

Want to be notified when our article is published? Enter your email address and name below to be the first to know.