Role Of Miners In The Use Of Btc

Miners do the job of adding new transactions in blocks. They maintain public leisure or this block chain. Special hardware and tremendous of electricity is required for mining. Miners get bitcoins and transaction fees in rewards. These bitcoins generated in the system are new. After adding transactions in the block, miners have to seal the block to avoid any manipulation of transactions by perpetrators. They need to solve a difficult puzzle to seal the block. They then publish the block in btc network and anybody can view the block. Miners compete with each other. They usually work in groups and split the profit earned amongst them. When you mine each block, you get 12.5 bitcoins. Miners may get profit but at the same time there are risks involved. Machine may get malfunction and surge in the competition of mining may lead to losses.

Risks involved in bitcoin

Layman Terms

Bitcoin being a crypto currency, its nature is complex. Its price is very fluctuating. If private key of bitcoin wallet is deleted or if there is a blunder done by bitcoin wallet provider then bitcoin is lost. After its transaction, it cannot be refunded. There is no authority to look into the scams. Since transactions of bitcoin do not reveal any personal identity, money laundering and illegitimate transactions might take place. Its market is new.

Positive aspects of bitcoin

There are lower transaction fees with bitcoin while doing international money transfers and traditional banking. Bitcoin transactions are fast. Your money is under your control and not under any authority. A price of bitcoin has increased exponentially in the last few years. So, people are investing more in it.It can be bought partially. Its smallest unit is Sathoshi. It is gaining popularity because of the benefits it is providing to its users.