The truth about Bitcoin mining: How far is the distance from dream to reality?

Why Does Everyone Want to Mine Bitcoin?

When it comes to Bitcoin, many people’s first reaction is, “Can I mine it for free?” This idea is natural because in Bitcoin’s early days, some people easily mined large amounts of BTC using ordinary computers. But the situation now is completely different.

To understand why mining is so attractive, we first need to grasp what mining actually involves.

The Essence of Mining: Keeping Records on the Blockchain

Bitcoin mining, simply put, is miners using mining machines to keep records for the Bitcoin network, and in return, the system awards BTC rewards. This process is fully automated and requires no manual intervention.

The specific operation logic is as follows: every transaction on the Bitcoin network needs to be recorded. These transactions are bundled into a data packet called a “block.” Miners’ task is to find a hash value that meets certain conditions through special calculations. The first to find it can add the new block to the blockchain and receive a reward.

This mechanism is called “Proof-of-Work (PoW)”, which ensures the security and decentralization of the entire network. Without miners participating, the Bitcoin network cannot operate, so mining determines Bitcoin’s survival.

Evolution of Mining Equipment: From Computers to Professional Mining Rigs

In the early days, Bitcoin mining had a very low barrier to entry. From 2009 to 2012, ordinary CPUs could mine, with relatively low difficulty, and many people indeed gained a lot of BTC this way.

But that era is long gone. As more people joined, mining equipment underwent dramatic evolution:

CPU Era (2009-2012) → Ordinary computers could participate, suitable for general users

GPU Era (early 2013) → GPU mining emerged, significantly increasing computing power

ASIC Era (mid-2013 to present) → Professional mining hardware dominates, with models like Avalon, AntMiner, etc., costing thousands to tens of thousands of dollars

The logic behind this evolution is clear: mining competition is becoming more intense, and ordinary equipment cannot keep up, leading manufacturers to continuously release specialized, high-hashrate devices.

Shift in Mining Methods: From Individual to Industrial

With the total network hashrate surpassing 580EH/s, solo mining by individuals has become nearly impossible to profit from.

The era of solo mining has completely passed. The current mainstream mining methods are:

Pool Mining — Hundreds or thousands of miners join forces, pooling their hashpower. Well-known pools include F2Pool, Poolin, BTC.com, AntPool, etc., with miners earning rewards proportional to their contributed hashpower.

Cloud Mining — Mining farms are set up in the cloud, miners rent hashpower without maintaining their own equipment.

What does this mean? It means Bitcoin mining has become a game for large capital, with increasing concentration. Small miners either join large pools or exit.

Two Main Sources of Mining Income

Miners’ income mainly comes from two parts:

Block Rewards — BTC earned after successfully mining a block. This reward halves every four years. It started at 50 BTC, then 25 BTC, 12.5 BTC, 6.25 BTC, and so on. The fourth halving, completed in April 2024, reduced the reward from 6.25 BTC to 3.125 BTC, directly impacting miners’ profits.

Transaction Fees — Users pay fees to transfer BTC, which also goes to miners. Fees are variable, depending on network congestion. During the Ordinals (Inscription) craze, fees once accounted for over 50% of miners’ total income.

Will You Be Able to Mine BTC for Free in 2025?

The straightforward answer: Almost impossible.

If you currently mine solo with a regular computer, what will happen? You will hardly mine any BTC. The reason is simple — the total network hashrate is too high; your hashpower is negligible, and you won’t win the right to record transactions.

Even if you join a mining pool, theoretically, you can earn some BTC proportional to your hashpower, but actual income often can’t even cover electricity costs. The era of mining with a computer is over.

To make mining profitable now, you need to meet several conditions:

• Purchase professional mining hardware — costing $1,000–$2,000 or more

• Join a mining pool — solo mining with one machine is basically hopeless

• Choose the latest models — mining hardware updates very quickly; older models have lower hashpower and significantly reduced earnings

Even so, as of May 29, 2025, the total cost to mine one Bitcoin is approximately $108,256.62 (including hardware, electricity, cooling, maintenance, and all expenses). You need the Bitcoin price to be high enough to break even.

How to Start Mining? (If You Still Want to Try)

Step 1: Confirm local policies — Mining is energy-intensive; some regions prohibit or restrict it. You must check first to avoid legal issues.

Step 2: Choose a method — Buy your own mining hardware, rent hashpower, or have a third-party operate your equipment. Choose based on your expertise and capital.

Step 3: Select equipment — Common models include AntMiner S19 Pro (high efficiency but expensive), WhatsMiner M30S++ (good value), Avalon 1246 (friendly for beginners), etc. Cloud mining platforms include NiceHash, Genesis Mining, HashFlare, with prices ranging from $0.05 to $1.5 per TH/s per day.

Step 4: Start mining — After choosing a mining pool, begin operation. When the pool successfully mines a block, you will receive BTC rewards proportional to your hashpower.

How to Calculate Mining Costs?

Don’t be intimidated by this question. Mining costs are basically:

Hardware costs + Electricity consumption + Cooling system expenses + Operational and maintenance costs

Electricity is often the biggest expense. A professional mining machine can consume over 1500 watts; running 24/7, the annual electricity bill is substantial. That’s why many mining farms relocate to regions with cheap electricity (e.g., countries rich in hydroelectric power).

Impact of Bitcoin Halving on Mining

The April 2024 halving is a watershed. Block rewards are cut from 6.25 BTC directly to 3.125 BTC, halving the miners’ block rewards.

The consequences:

Profit margins shrink — unless Bitcoin price rises significantly, miners’ net income will decline sharply.

Small miners drop out — those with high electricity costs or old equipment may be forced to shut down, causing a short-term decrease in total hashrate.

Transaction fees become more important — as on-chain activity increases (e.g., inscriptions, Layer 2), fee income will account for a larger share.

How Do Miners Respond to Halving?

Upgrade equipment — replace old miners with the latest high-efficiency models to reduce electricity costs.

Find cheaper electricity — relocate to regions with low electricity prices or policy incentives, or increase renewable energy use.

Diversify risk — use futures contracts to lock in Bitcoin prices, preventing losses from price drops.

Mine multiple coins — some pools support automatic algorithm switching, mining Bitcoin and other coins simultaneously to increase revenue.

What Will Mining Look Like in the Future?

With halving and increasing hashrate, this industry is undergoing structural changes:

Acceleration of centralization — small miners struggle to survive; large mining farms leverage economies of scale and cheap electricity to dominate the market.

Innovative mining models — “waste energy mining,” AI-powered hashpower leasing, and other new forms may emerge.

Shift in focus — from pure BTC mining to multi-coin mining or providing hashpower services.

Summary

Bitcoin mining is no longer an activity that ordinary people can participate in casually. It has evolved into an industry requiring large capital investment, professional knowledge, and economies of scale to be profitable.

If you still want to mine, be prepared to: spend thousands of dollars on equipment, pay ongoing electricity and maintenance costs, and join large pools to reduce risk. Even then, the payback period could be long.

If you believe in Bitcoin but don’t want to deal with the complexity of mining, there’s a simpler option — trading Bitcoin directly on exchanges. This avoids equipment costs and allows flexible market-based operations.

Whatever method you choose, the most important thing is to understand the risks, do your homework, and avoid being fooled by unrealistic “free mining” promises.