Miners use ASIC mining machines to mine, paying not only the cost of hardware facilities, but also the electricity. So why are there so many miners all over the world keen on mining? The answer is that mining is rewarded by bitcoin and transaction fees.
Let's start by discussing bitcoin. According to Satoshi Nakamoto's rules, 50 bitcoins can initially be mined every 10 minutes, but in order to maintain the scarcity, the amount of bitcoins reward will be cut in half every four years. Right now, the payout of mining is 6.25 bitcoins each time, with the next halving event expected in 2024. Usually, the price of bitcoin will increase after a halving event.
The transaction fee is an incentive for the user of the transfer to the miner. In the underlying system of bitcoin, there is no mandatory regulation on handling fees. However, with the continuous development and growth of bitcoin, the number of transactions generated per unit time is increasing. It is vital to charge miners some processing fees in order to encourage them to record their own transactions in the ledger first. The amount of the specific handling fee has nothing to do with the size of the transfer amount, and is usually determined by whether the transaction network is congested. Therefore, the transaction fee in a bear market will be lower than that in a bull market.