What is crypto-mining and can anyone do it? – Yahoo Finance

What is crypto-mining and can anyone do it? – Yahoo Finance


Employees work on bitcoin mining computers at Bitminer Factory in Florence, Italy

Employees work on bitcoin mining computers at Bitminer Factory in Florence, Italy. Photo: Alessandro Bianchi/Reuters

In 2016 a month’s bitcoin mining with a home computer would see approximately 0.1 BTC accumulated, or £2,479 ($3,428) at today’s prices. However, it is impossible to profitably mine bitcoin with a home set-up today. Because of increased difficulty levels, after many years and many burnt-out graphics cards, a home miner would be lucky to accumulate 0.1 bitcoin.

Bitcoin mining from home is not a feasible enterprise and best left to major players, like Bitfarms Ltd. (BITF.V), recently listed on the NASDAQ. However, many other mining alternatives can give passive, if not a full monthly income. But profitability is dependent on mining equipment, cryptocurrency volatility and electricity prices.

In essence, cryptocurrency mining provides the two major functions that power this method of value transfer – one that does not need a centralised authority to record and verify transactions, and so has raised the eyebrows of the world’s central banks. One function of the mining process is to add and verify transactions between users to the blockchain public ledger. The other function of the mining process is to produce new coins.

Read more: Could El Salvador’s bitcoin adoption trigger a domino effect in Latin America?

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