Compensation for block mining is a key element of the Bitcoin system. Without compensation, the system itself does not work. The size of compensation for miners is directly related to network protection capabilities. This is why periodic reductions in compensation are consequently problematic.
Miners should be given fair compensation for block mining. They also need a price. This is because such expensive mining equipment and large electricity bills are not just for fun.
Block rewards, which are halved every four years, will one day be completely eliminated. Of course, there are other means for miners to make profits besides mining compensation. Transaction fees paid by users every time they trade Bitcoin also return to miners as profits. In situations where the network is complex, it can take quite a long time for the transaction to be fully processed if the fee is not paid. However, in theory, the payment of these fees depends on the user’s choice. In many cases, the amount of fees is set by the user or the software of the user’s wallet has already set. Even so, as block compensation decreases, transaction fees are emerging as an important source of income for miners.
Nakamoto had already predicted this situation when Bitcoin was released.
“If block compensation is significantly reduced in the coming decades, the primary means of compensation for miners is transaction fees.”
The more computing power a miner possesses for bitcoin mining, the more difficult the attack becomes. This is because in order to execute an attack, it must also have a lot of processing power known as hash rate. In the same context, the more block compensation a miner receives, the better the bitcoin mining capability and the greater the network protection capability.
