How does mining make money?

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Mining profits constitute a significant source of income for cryptocurrency miners. These profits can be attributed to two primary aspects.

The first aspect is block rewards. Miners receive a specific amount of Bitcoin whenever they successfully mine a new block. Currently, this reward stands at 6.25 BTC. This serves as a direct incentive for miners to continue their operations and contribute to the network's security.

The second aspect is transaction fees. In addition to block rewards, miners also earn fees from all transactions included in the block they mine. As the network grows and more transactions are processed, these fees can become a substantial source of income for miners.

However, it's worth noting that block rewards are subject to change. With each halving event, the amount of Bitcoin rewarded per block is reduced by half. This means that over time, miners will rely more heavily on transaction fees to maintain their profitability.