Who Pays the Bitcoin Mining Reward? - George Levy

Join me in a free blockchain education masterclass and learn "How to Adapt to Change Using Blockchain to Transform Your Career and Help the World… (All Without Needing a College Degree.)"

One of the students of the Blockchain and Bitcoin Fundamentals course asks "Who pays the bitcoin mining reward that gets paid out to the miners whenever they mine a new block for the Bitcoin blockchain?"

In this video, I answer her question and I share with you the process of how new bitcoins are created.

Receive FREE video lessons from George Levy's paid blockchain, Bitcoin and cryptocurrency courses at:

Find out more about the Blockchain and Bitcoin Fundamentals course at:

Special offer for George Levy channel viewers, open a new Bitcoin wallet for Free and get $10 bonus in Bitcoin at:

LIMITED-TIME OPPORTUNITY:

The Blockchain Institute of Technology crowdfunding offer is live, find out how you can own a part of BIT at:

[neonixy]

Hi, I need some answers. For example, websites such as alloscomp show an estimated monthly bitcoin earnings. A monthly gain of 0.027 BTC at current figures is foreseen with a fast antminer of 110 TH / s. I was wondering, is the 6.25 BTC block reward not taken into account when calculating these numbers?

Can fast machines win the block reward in a single block? For example, have you ever won the block prize? Or Is the 0.027 monthly bitcoin earnings given on Alloscomp site only bitcoin distributed for transaction fee?

Please I would appreciate if you could explain. It will be very useful in my thesis.

[Kazepdp]

George, appreciate all the education on the crypto currency. I have a question in regards to a comment made in this video. As you note, a new cryptography challenge is issue every 10 minutes. What system decides which computer issues that challenge?

[hardkorstyle]

But who is providing the puzzle, is there a master server in control of every puzzle & reward?

[abheetnigam]

What about transaction fees in bitcoin newtork, is there no transaction feed in BTC Network. Your reply will be really appreciated, thanks in advane

[douglasnorthpole]

The answer is NOBODY pays the bitcoin mining reward. The bitcoins magically appear out of thin air.

[kartikkulkarni]

Hello, sorry to say but I did not get on how the miner is rewarded the 12.5 BTC? If he solves the cryptography challenge using hash functions, he gets rewarded the BTC. But who rewards him? does the blockchain reward it? do the other miners? or does the 12.5 bitcoin automatically come up from out of nowhere?

[tunbakyu]

Before answering who/what created and how it was created. Why was there algorithm to solve in the first place and where did these algorithms come from?

[UteGirlz]

Sorry if this is already answered. So are those 12.5 bitcoins only paid to the party/pool that solves the problem first? So can I potentially never make anything if I'm part of a pool or an individual that's never first to solve the problem even if I participate in the verification?

[beastmaster]

Hi George, my question is When 12, 5 BTC arrives to "best miners" where exactly this BTC appear? Have sent from any BTC adress?In other words... If i imagine that im the only one miner in the world i have one big PC and the reward time has come ... HOW and from WHERE i get my reward? 12, 5BTC will appear in my wallet? If yes HOW ? Thank you, great job!

[zainqamar]

was the first bitcoin in the market due to mining or it was just got redeem with the actual money?

[acab]

but who controls bitcoin and why are these ’challenges’ created. does it have a purpuse?

[AxLAxL]

is it possible a block has no transaction in year 2009?

[muneebj.]

Is it necessary that the new block consists of the transaction of 1 complete bitcoin? Or the new block contains the transactions from 10 minutes ago when the last blockchain was updated?

[brilliantcity]

Thanks for explaining. I want to know any chance if I win how do bitcoin sends BTC to my wallet if I start mining using bitmain miner?
I will be waiting for your reply.

[darudydude]

so basically what you're saying is it's like a real mine(no one is paying you, instead you find your money), sounds good

[palmplays]

So who thought of bitcoin and what did he want to achieve other than money. and how could bitcoin run out it would make sense if it would keep going.i get people want bitcoin for money but o just don’t get how it orgin was and why

[nahidsadeghi]

How long it takes transform money sriya over seas to USA ??

[kodkid]

Maybe I am stupid but that really didn't answer the question for me. Who is paying? If there is 21 million who created it and who backed the funding? It seems quite arbitrary to me. How is the value figured?
In essence here is my thought process:
Me: I solved the problem, here is the answer.
Bitcoin: Great, here is your coin(s).
Me: Who is funding this coin or backing this coin? Who is actually paying me for this? It feels like some multibillionaire set up this game and is rewarding people for solving problems. Who decided 21 million and no more? So many questions and no matter what video I watch no one has been able to answer the fundamental questions.

[sagarvyas]

I read that the reward depend on many factors. Let's say someone as a individual if by any chance mined a transaction and the hash score was not so good is the reward still 12.5 bitcoin ?

[sknazeer]

Iam 5years back mining amd award conformation my wallet how to recived