Talks End With China Warning Trade Benefits at Risk if U. Equity what does bitcoin mining do the value of an asset less the value of all liabilities on that asset.
Our network of expert financial advisors field questions from our community. Sophisticated content for financial advisors around investment strategies, industry trends, and advisor education. A celebration of the 100 most influential advisors and their contributions to critical conversations on finance. The latest markets news, real time quotes, financials and more. Cryptocurrency mining is painstaking, expensive, and only sporadically rewarding.
Nonetheless, mining has a magnetic draw for many investors interested in cryptocurrency. This may be because entrepreneurial types see mining as pennies from heaven, like California gold prospectors in 1848. And if you are technologically inclined, why not do it? Well, before you invest the time and equipment, read this explainer to see whether mining is really for you. We will focus primarily on Bitcoin. Related: How Bitcoin Works and our helpful infographic, What is Bitcoin? By mining, you can earn cryptocurrency without having to put down money for it.
That said, you certainly don’t have to be a miner to own crypto. In addition to lining the pockets of miners, mining serves a second and vital purpose: It is the only way to release new cryptocurrency into circulation. In other words, miners are basically “minting” currency. For example, as of the time of writing this piece, there were about 17 million Bitcoin in circulation.