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What are the risks of
Bitcoin mining?

The following risks are associated with mining Bitcoin:

  • Environmental Damage. According to a report by Digiconomist, bitcoin mining already causes 114 megatons of carbon dioxide emissions annually as the process requires plenty of computing power and electricity. Other sources cite slightly lower figures. Bitcoin mining operations tend to occur in areas where electricity is cheap.
  • Price Volatility. Since its inception, the bitcoin price has fluctuated wildly. This kind of volatility and the changing prices of bitcoin rewards make it difficult for miners to know how much they will continue to earn from the process.
  • Profitability. Considering the mining equipment used, the cost of mining machines, bitcoin volatility, changing reward prices, and ongoing electricity costs, there is no guarantee an individual bitcoin miner will continue to make enough money to cover operating costs.
  • Regulatory Risks. Regulations for cryptocurrencies continue to evolve and change as Bitcoin grows in popularity. These include taxation or whether mining is allowed in certain areas.
  • Malware. A widespread threat in the malware world is mining botnets, where users' systems are used for Bitcoin mining without their knowledge.

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