Whether you’re new to mining or already running high-powered ASICs with Bitmern, understanding how Bitcoin transactions work gives you a better view of what you’re securing—and how you’re earning.

Let’s break it down simply and directly, from the miner’s point of view.

What Is a Bitcoin Transaction?

A Bitcoin transaction is a transfer of BTC between two wallets. It includes:

  • Input(s): Where the Bitcoin is coming from (previous transactions)
  • Output(s): Where the Bitcoin is going
  • Digital Signatures: To verify ownership and permission
  • Transaction Fee: An incentive for miners to include the transaction in a block

What Happens When a Transaction Is Sent?

  1. Broadcast to the Network: Once a transaction is created, it’s sent to the Bitcoin network.
  2. Added to the Mempool: It waits in the “memory pool” until a miner picks it up.
  3. Miners Compete to Confirm It: Your mining rig (e.g., a Bitmain S21 Pro or Avalon A15 from Bitmern) hashes block candidates including that transaction.
  4. Block Found = Transaction Confirmed: If your miner solves the block, you get the reward (currently 3.125 BTC + fees).

Why It Matters to You as a Miner

  • Fees Are Part of Your Reward: As block rewards decrease over time (e.g., after halvings), transaction fees become a more important part of your daily earnings.
  • Block Composition Strategy: The mining software chooses which transactions to include based on their fees (sats per byte).
  • Network Congestion = Higher Fees: During busy periods (bull runs, high demand), your profits can rise due to increased transaction fees.

Bitmern Advantage in Handling Transactions

Bitmern’s infrastructure is designed to optimize every part of the mining process:

  • AI-Powered Pooling (ViaBTC): Aggregates high-fee transactions fast
  • Low Latency Networks: Faster block submission = better chance of winning
  • 24/7 Monitoring: Ensures you don’t miss out on rewards due to downtime or rejected blocks

Example: How You Profit

Let’s say your hosted S21 Pro at Bitmern solves a block.

  • Block reward = 3.125 BTC
  • Transaction fees = 0.6 BTC
  • Total = 3.725 BTC shared proportionally based on hashrate contribution

With 260 TH/s and Bitmern’s 96%+ uptime, your miner earns efficiently and consistently—especially during high-fee periods.

Key Takeaways

  • Every Bitcoin transaction relies on miners to be confirmed.
  • You earn block rewards + transaction fees.
  • Bitmern optimizes this process to boost your profitability.

Ready to earn from real transactions?
Start mining smarter with BitmernMining.com

Table of contents