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Transition to Web3 - Course 2 | Transactions and Bitcoin

Sp, how can a miner create new coins?

There is a space to add a special transaction, called "coinbase", in the blocks. For every mined block, the reward coins are sent to the public key written in the coinbase.

A miner adds their own public key and as a result receives the reward coins.

Back in 2009, you’d get paid 50 bitcoins to add a new block! Nowadays, it’s down to 6.25 bitcoins. So, if you solve the puzzle first and validate the block, that transaction is also validated and you earn those bitcoins!

Context: 1 bitcoin is worth ~$16,000 dollars as of December 29, 2022.

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