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I understand the basic concepts of Bitcoin and Blockchain.

As I understand, any bitcoin transaction has a transaction fee that is user adjustable. This needs to be above a certain value which can change over time for the transaction to be recorded on a block. Currently this value is about 300 satoshis/byte.

What I can't understand is how the miner is paid this amount? If a miner mines one block which is 1 MB in size, then the miner can record ~4424 transaction on that block (assuming ~226 bytes per transaction).

If everyone who did those transactions used the 300 satoshis/byte transaction fee this translates to ~ 3 Bitcoins.

A bitcoin block is worth 12.5 bitcoins currently. Does this mean that the miner gets ~15.5 bitcoins per block? (assuming the mining is mining solo and not in a pool)

P.S. I obviously tried searching this online and while I am sure the answer is out there but because of hot keywords like bitcoin and blockchain, most result eventually end up to articles, "What is Bitcoin?" xD

marked as duplicate by Murch May 23 '17 at 19:34

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migrated from crypto.stackexchange.com May 23 '17 at 18:44

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  • Indeed. There's nothing wrong with your understanding. See e.g. blockexplorer.com/block/… and look at the first transaction (which goes to the miner) and the fees of the other transactions. – raisyn May 23 '17 at 13:44