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How to Start a Cryptocurrency Mining Business - Deductions \u0026 Expenses (Part 3)If you're mining crypto like Bitcoin or Dogecoin, the IRS wants its cut. We're covering everything you need to know about crypto mining taxes in our guide. Cryptocurrency can be a profitable activity, but it can be costly to get set up. Learn how to start mining cryptocurrency and the costs involved. Bitcoin mining is a competition to add blocks, or secure financial records, to the blockchain ledger. Miners do this by racing to guess a digit hexadecimal.