The race to obtain bitcoin and other potentially lucrative cryptocurrencies is tied to a complex virtual process called “mining” — with high risks and high rewards for those who want to get involved.
Crypto mining is different than services like Best Wallet, which allows users to manage their cryptocurrency holdings, or Coinbase, which allows them to buy or sell tokens. Essentially, mining allows users secure newly created crypto tokens.
Competition to mine Bitcoin (BTC) and other tokens is fierce and carries a steep learning curve. In order to succeed, amateur crypto enthusiasts need to do plenty of research to ensure and have a significant chunk of upfront capital they’re willing to burn.
As of April 30, 2025, the average year-to-date closing price of Bitcoin is approximately $91,634, based on daily closing data from January through April 2025.
Analysts project that Bitcoin’s average price in 2025 will range between $100,000 and $134,000, with some forecasts suggesting potential peaks up to $225,000. These projections are influenced by factors such as institutional adoption, ETF inflows, and macroeconomic trends.
The New York Post answers key questions about cryptocurrency mining below.
What is crypto mining in simple terms?
Using powerful computers, crypto miners are solving complex math problems that are required to validate transactions on the blockchain, said Chris Kline, COO and co-founder of BitcoinIRA. Blockchain networks essentially serve as a “public ledger” for all transactions, promoting transparency.
Bitcoin is the most well-known example of a cryptocurrency that can be obtained in this way. Other popular tokens, like Ethereum, utilize a different system called “proof of stake” and don’t rely on mining.
“This competitive process rewards successful participants with newly generated tokens while maintaining the integrity of the decentralized system,” Kline told The Post. “Essentially, mining combines network security with financial incentives in a technological ecosystem designed to operate without central authority.”
Can crypto mining be profitable?
Mining can be highly profitable, but only when participants have carefully analyzed the costs. New entrants can expect to encounter “high fixed costs, technological complexity, and intense competition,” all of which are significant barriers to overcome, according to Peter Earle, a senior economist at the American Institute for Economic Research.
“The upfront capital needed for mining equipment, access to cheap electricity, and reliable internet infrastructure can be prohibitive,” Earle said.
Furthermore, the mining ecosystem is increasingly dominated by “industrial-scale” operations established in regions with lower electricity costs.
“Overall, mining has become less a game of experimentation and more a capital-intensive business, with economies of scale playing a central role — just as in traditional commodity extraction industries,” Earle added.
Are You Crypto Curious?
How to start crypto trading today
Download a trusted exchange app — Start by choosing a licensed crypto exchange. We recommend starting with the Best Wallet app, available for both iOS and Android.
Create and verify your account — Sign up using your email, Google, or Apple ID. To complete registration, you’ll need to verify your identity with a government-issued ID and enable two-factor authentication (2FA) for added security.
Fund your account — Deposit money into your account by linking a bank account or credit card or even using gift cards. Choose an option that best fits your lifestyle.
Buy your first cryptocurrency — Use the app’s marketplace or swap tool to purchase crypto by entering the ticker symbol — like BTC for Bitcoin or ETH for Ethereum — and follow the prompts to complete the transaction.
Choose how to store your crypto — Decide whether you’ll keep your crypto in the exchange, move it to a digital wallet (hot wallet), or store it offline (cold wallet) for extra protection.
What are the risks of crypto mining?
The biggest risk faced by amateur miners is the possibility of becoming financially overextended while setting up an operation, with no guarantee of immediate success.
“The challenge that comes with mining as a business is that you have the upfront cost of mining equipment plus the constant costs of electricity (for running the equipment 24/7), but you are only rewarded cryptocurrencies if you successfully outcompete others in puzzle solving,” said Benjamin Cole, a cryptocurrency expert and professor at Fordham University’s Gabelli School of Business.
“So it is possible to run your miner all year — running up massive electricity bills — but never get paid anything because you never successfully solve the puzzle faster than everyone else,” Cole added.
One way to mitigate this risk is to join a mining pool, which consists of a team of miners who share both the costs and potential rewards.
Can crypto mining damage your laptop?
Since crypto mining requires immensely powerful computers and high electricity usage, experts generally do not recommend using personal laptops or phones. Aside from potential overheating that can damage devices, amateur miners will be facing off against professional operations with top-of-the-line hardware.
“One way for individuals get involved today is by renting space in a data center — called hosting — which runs the miner for you with low-cost power and hands-on management,” said Tyler Stevens, cofounder of Exergy, a firm that designs heating systems powered by bitcoin mining.
“If done right, this can yield a steady stream of bitcoin rewards, often cheaper than buying directly on an exchange — depending on electricity costs and market conditions,” Stevens said.
What is the environmental impact of crypto mining?
Crypto mining is extremely energy-intensive — to the point that major operations can strain local power grids, cause carbon pollution and raise environmental concerns among critics.
Mining has surged in popularity in recent years and could represent more than 2% of the annual US electricity consumption, according to a 2024 report by the US Energy Information Administration. One 2021 study found that Bitcoin used more electricity than the entire country of Argentina.
How is crypto mining done?
The most advanced operations make use of specialized hardware called ASICs (application-specific integrated circuits). Other methods rely on high-end graphics processing units, commonly referred to as GPUs.
The hardware is essentially racing to solve the complex math problems required to verify transactions and unlock another Bitcoin. The faster the system, the more effective it is.
What is a crypto mining facility?
Major players have increasingly relied on custom-made computer buildouts that mine cryptocurrency around the clock. Experts compare them to data centers, with top-of-the-line hardware that’s specially made for mining and cooling systems in place to ensure they don’t overheat.
What are the differences between crypto mining and crypto trading?
Crypto mining and crypto trading are separate activities. Miners are attempting to complete new transactions on the blockchain so that they can be rewarded with newly issued crypto tokens. Traders are buying and selling existing tokens for profit.
What is the future of crypto mining?
Experts say that amateur crypto mining is expected to become increasingly difficult over time as professional and industrial-scale operations allocate more resources.
“Bitcoin’s difficulty has increased significantly, making solo mining nearly impossible without a massive investment,” said crypto expert and lawyer John Deaton. “Cryptocurrency mining has the potential to be rewarding, but it is not a get-rich-quick scheme. Long gone are the days when an individual could mine Bitcoin on a laptop.”
The total supply of Bitcoin will max out at 21 million, and no more will ever be created. At present, the final block is expected to be mined in 2140.
