Mining Bitcoin at Home Just Got Easier for Crypto Investors

Want to sit in your pajamas, drink your coffee and mine some bitcoin from your bedroom? Well, you can.

Compass Mining, which sells bitcoin mining equipment and services, announced this week that it’s launching a direct-to-consumer mining service, allowing miners to set up shop in their own homes.

Cryptocurrency enthusiasts used to be able to mine bitcoin on their own laptops from their houses and apartments. But around 2012, mining machines burst onto the scene and the industry boomed. Large firms were able to mine with thousands of machines, leaving individual miners with high hardware costs and less of an opportunity to actually mine any bitcoin.

Now, Compass Mining says it’s “bringing bitcoin mining back to its roots” by allowing miners to buy a single application-specific integrated circuit (ASIC), which is the equipment used to mine bitcoin and other cryptocurrencies, instead of having to buy in bulk. Prices for individual machines start at $8,100.

Sure, being able to create money at home might seem magical — Bitcoin is worth over $40,000 per coin right now, even after a recent decline. But mining for bitcoin doesn’t equate to snapping your fingers and getting bitcoin, and it certainly has risks.

What is bitcoin mining?

Bitcoin mining is how new bitcoins are created, and it involves solving a complicated math problem. Or, at least, your computer solving a complicated math problem.

Computers attempting to mine bitcoin run a program that is essentially a a trial-and-error algorithm, performing millions of calculations to solve the computational puzzle.

If you’re successful, you get what’s called a “block reward,” or a fixed number of new bitcoins (BTC). One block equals 6.25 BTC, but the rewards are halved after every 210,000 blocks, or about every 4 years. This was part of Bitcoin’s design to ensure that a maximum of only 21 million bitcoins are created (currently, there are nearly 19 million in circulation).