The surge in cryptocurrency prices over the past year has spurred renewed interest in the multiple ways to profit from the asset class.
Crypto mining remains one of the most viable ways to participate in the upside of digital currencies without buying them directly. In practice, miners’ computers compete by solving complex mathematical equations that help verify digital currency transactions and update the shared ledger called the blockchain. Their reward for solving these problems is a share of the cryptocurrency that’s associated with the blockchain they are part of, such as bitcoin or ethereum.
Since cryptos are decentralized, meaning that no appointed intermediaries are recording each transaction, miners are essential to keeping the crypto ecosystem alive.
But mining is not without current and future roadblocks. The environmental impact of its electricity usage is a hotly contested issue. Miners are fleeing China, a historically important location for facilities, after the government banned mining in some provinces. And the infrastructure bill making its way through the US Congress could introduce more stringent tax-reporting requirements for miners. https://www.businessinsider.com/how-to-mine-bitcoin-ether-doge-crypto-earnings-costs-rigs-setup-advice