Is there still a chance to mine Bitcoin in 2025? An in-depth analysis of the current state of BTC mining and Taiwan's legal challenges

What is Bitcoin Mining?

The essence of Bitcoin mining is simple: Miners use mining hardware to keep records for the Bitcoin network, and the system rewards them with BTC. Here, “miners” are the operators of mining hardware, which are physical devices that perform computational tasks.

For example, if you think of the Bitcoin network as a system that needs to record transactions 24/7, then miners are the record-keepers, using computational power instead of pen and paper to automate this process.

How Mining Works: Proof-of-Work Mechanism

Bitcoin uses the “Proof-of-Work”(Proof-of-Work, PoW) mechanism, which involves three core steps:

Transaction Packaging and Puzzle Solving: BTC transactions on the network are bundled into “blocks”. Miners need to perform complex mathematical calculations to find a hash value that meets certain criteria. This process involves repeated attempts, similar to solving an extremely difficult puzzle.

Block Verification and Linking: Once a miner successfully solves the puzzle, they broadcast the new block to the entire network. Other nodes verify the validity of the block, and once most agree, the new block is added to the blockchain.

Reward Mechanism: The first miner to solve the puzzle receives rewards, which include the system-generated block reward and transaction fees.

Currently, the total network hashrate exceeds 580 EH/s, which means it is virtually impossible for an ordinary computer to mine BTC alone.

What Are the Benefits of Mining?

Miners’ BTC income mainly comes from two parts:

Block Rewards: Every time a miner successfully verifies a new block, they receive a pre-set BTC reward. This reward halves every 4 years, from an initial 50 BTC to 3.125 BTC (after the fourth halving in April 2024).

Transaction Fees: Users pay fees when transferring BTC, and these fees are collected by the miner who successfully packages the transaction. During network congestion periods (e.g., the 2023 inscription boom), fee income has accounted for over 50% of miners’ total revenue.

From an economic perspective, as long as mining is profitable, people will continue to mine, which is why the Bitcoin network can operate stably. If all miners stop mining, the Bitcoin network would grind to a halt.

Evolution of the Mining Industry: From Individual to Industrial

Hardware Upgrades

Between 2009-2012, ordinary CPUs could mine Bitcoin. After 2013, GPUs (graphics cards) became popular. But the real game-changer was the emergence of ASICs (Application-Specific Integrated Circuits), which turned mining into a profession requiring specialized hardware investments. Today, common mining machines include AntMiner, Avalon, etc., costing from around $1,000 to tens of thousands of dollars.

Shift in Mining Models

Early miners could mine solo, but as total network hashrate surged, individual chances of mining BTC dropped sharply, leading many to incur losses. To address this, miners started pooling resources into “mining pools,” combining their hashrate and sharing rewards proportionally. Major pools include F2Pool, Poolin, BTC.com, etc., making collective mining the mainstream.

Maturation of Business Models

Mining evolved from individual profit pursuits to reward sharing within pools based on contributed hashrate, and now to cloud mining platforms (where users can rent hashrate directly). The industry has become fully industrialized, dominated by large mining farms and pool operators.

Can Individuals Mine Free Bitcoin in 2025? The Harsh Reality

In the early days, “free mining” existed because the demand for hashrate was low, and personal computers could easily mine large amounts of BTC. But now:

Solo mining is no longer feasible: Using a regular computer alone has too little hashrate to compete for record-keeping rights. Even joining a pool yields tiny rewards that often don’t cover electricity costs.

Requires professional hardware investment: To earn meaningful rewards, you need to buy specialized mining machines (usually costing over $1,000–$2,000), and hardware quickly becomes outdated. Older machines have significantly lower hashrate compared to newer models, drastically reducing profitability.

Must join a mining pool: Even with large mining machines, not joining a pool makes it highly unlikely to mine BTC successfully.

In short, there is no such thing as “free mining” anymore. Anyone can start mining, but the costs (hardware, electricity, maintenance) often outweigh the rewards, making ROI difficult to guarantee.

What Happens to Mining Economics After the 2024 Halving?

In April 2024, Bitcoin completed its fourth halving, reducing the block reward from 6.25 BTC to 3.125 BTC, which has a significant impact:

Reward Reduction: Miners’ block rewards are cut in half. If Bitcoin’s price doesn’t rise accordingly, profit margins will shrink substantially.

Mining Decentralization and Consolidation: Small and medium miners with high electricity costs or outdated equipment are forced to shut down, causing a short-term drop in total hashrate. However, more efficient large-scale farms will fill the gap, further increasing industry centralization.

Transaction Fees Become More Important: As Layer 2 solutions and inscriptions grow, transaction fees constitute a larger share of miners’ income. Some miners are shifting focus to fee-based coins.

Emerging Strategies: Some miners upgrade to more energy-efficient machines, relocate to regions with cheaper electricity, or use futures contracts to hedge BTC prices and reduce risks.

Post-halving, the trend is clear: small miners’ survival space shrinks, and hashrate becomes increasingly concentrated in large farms with cheap electricity and economies of scale.

Is Mining Illegal in Taiwan? The Legal Risks Cannot Be Ignored

This is a concern for many users in Taiwan. Mining itself is not explicitly illegal in Taiwan, but there are several legal risks to be aware of:

Electricity Costs and Legality: Large-scale mining consumes huge amounts of power. Using illegal electricity theft, excessive electricity use, or violating industrial zone regulations can violate the “Electricity Act” and theft laws.

Noise and Environmental Issues: Mining rigs generate high noise levels, potentially violating noise control laws. The heat emitted by many machines can also pose environmental pollution risks.

Lease and Land Use Compliance: Renting premises for mining without proper industrial use permits or unclear lease agreements can lead to breach of contract or eviction risks.

Tax Obligations: BTC mining income is classified as “other income” in Taiwan and must be declared for income tax. Many small miners overlook this, risking penalties later.

Financial Regulation Risks: Involving mining services such as proxy mining, fundraising, or collective investment may violate the “Securities and Exchange Act” or be considered illegal fundraising.

Therefore, Taiwanese mining enthusiasts should thoroughly understand local electricity policies, environmental laws, and tax requirements before starting, and consult legal experts if needed.

Breakdown of Mining Costs: How Much Does It Cost to Mine 1 BTC?

The total cost of Bitcoin mining includes:

• Hardware Expenses: Purchase of specialized mining equipment
• Electricity Costs: Power consumption for 24/7 operation, often the largest variable
• Cooling Systems: Air conditioning, fans, or liquid cooling to maintain optimal temperature
• Maintenance and Operations: Network, venue rental, labor, and other daily costs
• Mining Pool Fees: Commission paid to mining pools

Based on public data, as of May 2025, the average cost to mine one Bitcoin is approximately $108,000 USD. This means miners only profit when BTC price is significantly higher than this cost.

How to Start Mining? Complete Process

Step 1: Assess Legal Risks

Before any operation, confirm whether mining is permitted in your area, and understand relevant electricity, environmental, and tax laws.

Step 2: Decide on Mining Method

Options include purchasing and operating your own mining hardware, hosting hardware with third-party operators, or renting hashrate (cloud mining).

Step 3: Choose a Mining Pool

Major pools include F2Pool, Poolin, BTC.com, AntPool, etc. Different pools have different fee structures and reward mechanisms; choose based on your needs.

Step 4: Set Up Wallet and Payment Method

You need a secure Bitcoin wallet to store your earnings. Also, understand how the pool pays out (usually transferred periodically to your wallet address).

Step 5: Start Mining

Connect your hardware to the pool, monitor operation status, and regularly check hardware temperature, power consumption, and earnings.

How Much Can Mining Earn? Profit Estimation

Mining earnings depend on several factors:

• Your hardware hashrate (the higher, the better)
• Current network difficulty (higher difficulty means lower chances)
• Bitcoin price (determines final cash value)
• Electricity costs (vary greatly by region)

Many online tools (like MacroMicro, etc.) offer mining calculators. Input your hashrate and electricity rate to estimate daily, monthly, and yearly earnings. Keep in mind, these are static calculations based on current difficulty and prices; actual earnings fluctuate with market conditions.

Conclusion: Mining or Trading, Your Choice

Bitcoin mining has evolved from a hobby in 2009 to an industry dominated by large capital. For individuals to earn meaningful BTC through mining, significant investment in professional hardware, access to cheap electricity, and joining pools to diversify risk are necessary.

Taiwanese users should pay special attention to legal risks—electricity regulation, noise control, tax reporting—since many seemingly simple mining projects hide legal pitfalls.

For most retail investors, directly buying or trading BTC on exchanges may be more economical and efficient than mining personally. This approach avoids hardware costs, electricity bills, maintenance, and legal issues. Ultimately, the choice depends on your capital, technical skills, and risk tolerance.