What Is the Economic Incentive for Miners to Participate in a High-Difficulty Network?

Miners are primarily incentivized by the block reward, which consists of newly minted cryptocurrency and transaction fees. Even with high difficulty, the potential for a large, immediate payout (the block reward) drives participation.

The difficulty ensures that the competition is fair and that the network's value, which underpins the reward, remains secure. Miners view the cost of energy and hardware as an investment against the expected value of the reward.