CNBC Investigates How Much It Costs To Mine For Cryptocurrency
Written by IMN on 9 Mar 2021
Mining for cryptocurrencies like bitcoin, ether, and dogecoin isn’t as lucrative as it used to be. Here’s a look at how to do it and why small-time miners are being driven out of business. Bitcoin topped $58,000 in February for the first time. Ether, the world’s second-biggest cryptocurrency, has also hit record highs this year. Even dogecoin — a cryptocurrency invented as a joke that does not have the same serious function and institutional backing as bitcoin — surged more than 50% in the last month after a tweet from Tesla CEO Elon Musk.
It is easier than ever to buy a small fraction of one bitcoin using an app such as Coinbase. However, that’s not the only way investors can get their hands on cryptocurrency.
Investors can also mine for the digital currency. Before the Covid-19 pandemic started, CNBC went to a blockchain production studio in Brooklyn to learn how to mine for bitcoin’s biggest rival, ether.