Bitcoin Mining Guide: Is It Still Worth Mining as an Individual in 2025? How to Choose a Mining Program

The Essence of Mining: Using Computation to Exchange for BTC

To understand Bitcoin mining, first clarify three concepts:

Mining refers to the process where miners run mining software on mining hardware to participate in the Bitcoin network’s bookkeeping work and earn BTC rewards.

Miners are individuals or organizations that own mining hardware and run mining software.

Mining hardware is specialized equipment used for mining, evolving from early ordinary computers to now dedicated ASIC miners.

In simple terms, miners are like accountants for a bank, but instead of managing fiat currency, they keep track of Bitcoin transactions, and the system automatically rewards them with BTC.

How Does Mining Work? An Explanation of the Proof-of-Work Mechanism

Bitcoin mining uses the Proof-of-Work (PoW) mechanism. Understanding this mechanism helps explain why mining is so “tiring”:

Transactions occur constantly on the Bitcoin network, and these transactions are bundled into “blocks.” Miners run mining software to perform intensive mathematical calculations, trying to find a hash value that meets certain criteria.

Once a miner finds the correct hash, the new block is broadcast to the entire network. Other nodes verify it, and the block is added to the blockchain. The successful miner receives a reward.

The entire process is like solving an extremely difficult puzzle—requiring computers to keep trying different solutions until the answer is found.

Currently, the total network hash rate exceeds 580 EH/s. What does this mean? It’s nearly impossible for an individual using a regular computer to compete for the bookkeeping rights.

Is Mining Profitable? Where Do Rewards Come From

Mining can indeed make money; miners’ income comes from two parts:

Block rewards — Each time a block is successfully added, a certain amount of BTC is awarded. According to Bitcoin’s design, this reward halves every 4 years, starting from 50, then 25, 12.5, 6.25, 3.125 BTC. As of (post-2024), the reward is 3.125 BTC per block.

Transaction fees — Anyone making BTC transactions must pay a fee, which goes to the miners who include the transaction in a block. When the network is congested, fees can surge.

Beyond direct earnings, mining has a deeper significance: Without miners, there is no Bitcoin network. If all miners stop working, blocks will cease to be added, and the network would halt. Therefore, mining essentially sustains the entire blockchain system. As long as it is profitable, people will continue mining.

Evolution of Mining Hardware: From Laptops to Mining Farms

Mining hardware has undergone three major transformations:

CPU Era (2009-2012) — Ordinary laptops’ CPUs could mine, with low difficulty and entry barriers.

GPU Era (early 2013) — GPUs have stronger parallel computing capabilities, making GPU mining popular, allowing regular users to participate.

ASIC Era (mid-2013 to present) — Specialized integrated circuits (ASICs) designed solely for mining emerged, dominating the market. Common ASIC miners include AntMiner S19 series(, WhatsMiner M30 series), etc. These typically cost over $1,000–$2,000 and consume significant power.

As hardware evolved, the cost of mining equipment skyrocketed, and now a single miner can cost several thousand dollars.

Transition of Mining Models: From Individuals to Mining Pools

Solo mining — In early years (2009-2013), individuals or small groups mined independently. If they mined a block, they kept the entire reward. Now, with the network’s enormous hash rate, solo mining is nearly impossible.

Mining pools — As total network hash rate increased, solo mining success rates plummeted. To address this, miners formed “pools,” combining their hash power to mine collectively, sharing rewards proportionally. This is the dominant current model.

Cloud mining — Setting up mining operations in the cloud, where miners rent hash power without owning hardware. This is more friendly to small miners but involves risks related to security and income stability.

These developments reflect a trend: Mining is becoming more centralized, and individual miners find it harder to profit.

Can Individuals Still Mine “For Free” in 2025?

This is a common concern. The realistic answer: No.

In early days, the network’s hash rate was low, and personal computers could mine a good amount of BTC with minimal costs, making it seem “free.”

But now? If you mine solo with a regular computer, your hash rate is negligible compared to the network’s 580 EH/s, making it nearly impossible to win the bookkeeping rights.

If you join a mining pool? You might get some BTC proportional to your hash power, but in reality:

• Your hash power is too weak, earning very little
• The pool charges a fee (usually 1-3%)
• Hardware costs, electricity, maintenance costs far exceed your earnings

Conclusion: It’s almost impossible for an individual to mine large amounts of BTC like Satoshi Nakamoto did unless you buy professional mining equipment and join a pool.

Note that in recent years, mining hardware has advanced rapidly. Even if you buy a miner, if it’s an older model with lower hash rate, your profitability will suffer. Old miners are inefficient, consume a lot of power, and risk losing money.

How to Start Mining? Practical Guide

( Step 1: Confirm local policies

Mining is energy-intensive, especially with PoW cryptocurrencies. Many countries and regions have restrictions or bans. Be sure to verify whether mining is permitted where you are.

) Step 2: Choose a mining method

Buy your own miner:

• Pros: Full control over earnings
• Cons: Requires technical knowledge, space, cooling, noisy, maintenance
• Suitable for: Tech-savvy, with available space, willing to invest long-term

Hosting services (mining hosting):

• Buy hardware and have a third-party operate and maintain
• Pros: Hands-off, professional management
• Cons: Hosting fees, rapid depreciation
• Suitable for: Those with capital but no time

Rent hash power:

• Rent computing power without hardware
• Pros: No hardware investment, low risk, easy entry
• Cons: Higher long-term costs, potentially lower returns
• Suitable for: Beginners, testing the waters

( Step 3: Select mining software and pool

Popular mining software includes CGMiner, BFGMiner, etc. Focus on stability and pool support.

Choose reputable pools like F2Pool, Poolin, BTC.com, which are well-known and safer. Avoid unknown or new pools to prevent scams.

) Step 4: Monitor earnings

After mining begins, the pool distributes BTC based on your contribution. You can estimate daily earnings with online calculators, considering electricity and hardware costs.

How Much Does It Cost to Mine One Bitcoin?

This is a key concern for miners. The total cost includes:

• Hardware costs — purchasing mining equipment
• Electricity costs — the largest daily expense, accounting for 70-80%
• Cooling and ventilation — air conditioning, fans, liquid cooling
• Maintenance and operation — venue rent, labor, internet, miscellaneous
• Pool fees — usually 1-3% of earnings

Based on market data, as of May 2025, the average cost to mine one Bitcoin is approximately $108,256. This varies depending on electricity prices, hardware efficiency, and BTC price fluctuations.

Lower electricity costs (e.g., in Iceland, Central Asia) reduce mining costs, which is why large farms tend to locate where power is cheap.

How Much Can Miners Earn?

Mining revenue depends on multiple factors:

• Your hash rate — higher hash rate increases chances of winning blocks
• Network difficulty — higher difficulty reduces individual success probability
• Bitcoin price — higher prices increase BTC value
• Electricity costs — lower costs improve profit margins
• Pool fees — higher fees reduce net income

A simplified earnings formula: Daily profit = Your hash share × Daily block reward × BTC price – electricity and other costs

You can use online calculators by inputting your hardware, hash rate, electricity rate, etc., to get rough daily, monthly, yearly profit estimates.

How Will Bitcoin Halving Impact Mining?

Bitcoin halving occurs roughly every four years, reducing the block reward by half, to control inflation.

2024 Halving Impact

In April 2024, Bitcoin completed its fourth halving, reducing the block reward from 6.25 BTC to 3.125 BTC. The effects are significant:

Reward halved — If BTC price remains unchanged, miners’ revenue drops by 50%, squeezing profit margins.

Risk of miner “exit” — High electricity costs and aging hardware lead some miners to shut down, causing a short-term hash rate decline. However, more efficient new miners will fill the gap over time.

Transaction fee importance increases — As on-chain activity grows (e.g., NFT boom), transaction fees surge. Miners earn more from fees, sometimes over 50% of total revenue in 2023.

( How Miners Respond

Strategies include:

Lower costs — Upgrade to more efficient hardware, relocate to regions with cheaper electricity, utilize renewable energy sources.

Optimize operations — Some pools support automatic algorithm switching, mine multiple PoW coins to diversify income, or hedge via futures to lock in BTC prices.

) Future Trends

Post-halving, mining industry will further centralize:

• Small miners exit — Inefficient, high-cost individual and small-scale miners will be phased out
• Large farms dominate — Big-scale operations with economies of scale and cheap power will gain market share
• Innovative mining models — “Waste energy mining”###using wasted energy###, hybrid farms combining AI and energy leasing, etc., may emerge

Summary

Bitcoin mining has evolved from a hobby for individuals to an industrial operation. If you want to profit from mining, be aware of several realities:

High investment required — Professional hardware, stable power, cooling, hosting fees, with initial costs often in the thousands or tens of thousands of dollars.

Join a mining pool — Solo mining is nearly impossible; sharing rewards via pools is the only practical way.

Long ROI cycle — Currently, mining one BTC costs over $100,000; after deducting costs, ROI is not attractive.

Continuous optimization needed — Hardware updates, electricity costs, difficulty changes all impact profitability.

Policy risks — Mining consumes a lot of energy; many regions are restricting or banning it.

Finally, always choose reputable pools and mining software providers to avoid scams. Do thorough research, avoid blindly following trends. Mining is both a technical skill and a business that requires rational decision-making.