Why Do People Mine Bitcoin!? #energy #money #educationalvideo #learn #academy
Video Transcript
Why on Earth the people mine Bitcoin Iโll show you the first key piece to understand is this Bitcoin itself is a global monetary Network and that is people sending and receiving Bitcoin to one another all of those Bitcoin transactions pay fees and the Bitcoin miners are the ones who earn those fees
They are the decentral bankers of the Bitcoin Network let me show you how it breaks down in terms of electricity cost and how much profit per kilowatt hour that they earn a typical minor May pay 5 cents per kilowatt running that electricity through his machine to earn
12 cents of Bitcoin per kilowatt thatโs his cost and thatโs his revenue and the gap between is his profit so a Bitcoin miner wants to get the cheapest price for electricity because that widens the Gap so heโs earning more Bitcoin Bitcoin mining is an economic incentive to use energy