How do BTC fees work?

Bitcoin fees serve as a pivotal incentive for miners, who play a crucial role in the cryptocurrency ecosystem. These fees are essentially rewards for their relentless efforts in maintaining the blockchain's integrity and security.

Miners are tasked with the arduous job of 'fishing' for transactions that are stored in memory pools across the network. This process involves verifying and validating transactions to ensure their legitimacy before adding them to the blockchain.

Every time a miner successfully 'fishes' a transaction, they are rewarded with a fee attached to it. This fee serves as a token of appreciation for their dedication and hard work in ensuring the smooth functioning of the network.

The amount of fee attached to a transaction is determined by various factors, including the size of the transaction and the current demand for mining services. Larger or more complex transactions tend to have higher fees, as they require more resources and time to process.

Since mining is a computationally intensive and expensive task, miners rely on these fees as a source of income. The fees help cover their operational costs, such as electricity bills and equipment maintenance, and provide an incentive to continue mining.