Is crypto mining worth it right now? In 2021? The short answer is an emphatic yes. The long answer…it is complicated. Cryptocurrency Mining started as a well-paid hobby for early adopters of Bitcoin who had the chance to earn 50 BTC every 10 minutes while they mined from their livingrooms. In 2020, successfully mining a single Bitcoin block and holding it since 2010 would mean you are in the possession of $450,000 worth of Bitcoin in your wallet. That is mind-blowing!
At this point, I think I’ll have to say that crypto mining DOES NOT involve drilling holes somewhere in Antarctica to get assets as some might be imagining already. Trust me. In simple terms, crypto mining is a process whereby a machine performs certain mathematical tasks to get a little bit of cryptocurrency.
Crypto mining is a popular topic on the internet for the tech-savvy ones. Perhaps you have read articles about cryptos and even watched my Cryptocurrency for Beginners video. And in those articles and that video, cryptocurrency mining is mentioned. But it is still possible not to know what crypto mining fully entails.
Simply put, crypto mining is a term that refers to the process of securing cryptocurrency as a reward for work that you complete. Bitcoin mining is the most popular because Bitcoin is the widest known digital currency. But, why do people crypto mine? Is it important? Are there gains?
For some people, crypto mining is a viable source of income. For some, it is about having greater financial freedom legitimately without the interference of governments or central banks. Regardless of the reason, cryptos are an area of growing interest for lovers of tech, investors, and cybercriminals.
But what is crypto mining in a more technical term and what is the mechanics behind its operation?