When people talk about cryptocurrency mining income, the profit earned by validating blockchain transactions using specialized hardware. Also known as mining rewards, it’s the original way people got into crypto without buying coins outright. But here’s the truth: most folks who started mining in 2021 are now losing money. The idea that you can plug in a box and earn passive cash is a myth that died with Bitcoin’s early days.
What really drives cryptocurrency mining income, the profit earned by validating blockchain transactions using specialized hardware. Also known as mining rewards, it’s the original way people got into crypto without buying coins outright. isn’t just the coin price—it’s electricity costs, the price you pay per kilowatt-hour to run mining rigs 24/7. If your power bill is over $0.12 per kWh, you’re likely underwater unless you’re using the latest ASICs. And even then, mining hardware, specialized equipment like ASIC miners designed to solve cryptographic puzzles for blockchain rewards becomes obsolete in 12 to 18 months. The Antminer S19 Pro? It was king in 2022. Today, it’s a paperweight unless you’re mining on a cheap grid.
Proof of work blockchains like Bitcoin still rely on miners to keep the network alive, but the competition is brutal. Big mining farms in Texas, Kazakhstan, and Georgia run thousands of machines with industrial cooling and negotiated power rates. A single home miner with a $3,000 rig might earn $15 a week after electricity—after taxes and wear and tear. That’s not income. That’s a hobby with a high cost of entry.
And don’t get fooled by YouTube gurus selling "guaranteed mining profits." The math doesn’t lie. Mining income today isn’t about luck—it’s about access. Access to cheap power. Access to bulk hardware. Access to cooling solutions. Most people don’t have any of those. That’s why the posts below cover real cases: the guy who lost $8,000 on used miners, the trader who switched to staking after his electricity bill doubled, and the one who made $200 a month mining Monero on a repurposed gaming PC.
What you’ll find here aren’t theoretical guides. These are real stories from people who tried mining, got burned, or barely broke even—and what they learned the hard way. No fluff. No hype. Just the numbers that matter when you’re trying to turn electricity into crypto.
Crypto mining rewards are taxed as income when received and again as capital gains when sold. In 2025, IRS rules require detailed tracking, quarterly payments, and new reporting forms. Know your obligations to avoid penalties.
