Bitcoin Mining: How Does it Work and Is It Worth It?

Bitcoin mining can be extremely lucrative, but it also comes with big risks. Here’s what you need to know.

An image of a coin with the Bitcoin symbol on it.
(Image credit: Getty Images)

Bitcoin has been one of the hottest topics of conversation in the world of investing over recent years with many desperate to understand what it is all about and whether you can make money from Bitcoin. However, it’s not just about investing in the cryptocurrency - there’s also the option of mining Bitcoin. recently published a helpful article on whether mining Bitcoin is profitable and, here, we summarize it for you. Before we get into it, please note that investing in Bitcoin and mining Bitcoin both come with big risks, so only try your hand if you’re sure of what you are doing and you are comfortable with the risks. For more help, you can also listen to me and other prominent journalists describe the pros and cons of Bitcoin mining in last week’s episode of The Week Unwrapped podcast

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Guy Anker
MD, Wealth

Guy has extensive experience in personal finance journalism having joined Future (Kiplinger's parent company) after 13 years at, most recently as deputy editor, and working closely alongside Martin Lewis. He has also worked at the Daily Mail as a personal finance reporter and his work has appeared in The Sun, Guardian, Observer, Mirror and other national newspapers. As a money and consumer expert, Guy is a regular guest on TV and radio – appearing on BBC News, BBC Radio 4, Sky News, ITV News and more.