π° Bitcoin Mining, Can You Still Make Money? — Mining Reality and Sobering Outlook in 2025
Once upon a time, the phrase “mining makes money” spread like a magic spell in the cryptocurrency community. During the Bitcoin Great Rally in 2017, many people dreamed of making big profits with small investments through mining.
However, a few years later, the situation has completely changed. Mining difficulty has skyrocketed, and the cost of specialized equipment and electricity bills have blocked individual miners’ dreams from becoming a reality.
So, will Bitcoin mining really be profitable in 2025? Or has it already become the exclusive domain of large corporations? Today, we will take a sober look at the reality of Bitcoin mining and uncover the truth that individual investors need to know.
π The Basic Principles of Bitcoin Mining — Why Is It Getting More Difficult?
To put it simply, Bitcoin mining is a huge math problem-solving competition in which computers from all over the world participate. The miner who finds the correct answer first receives the newly issued Bitcoin and transaction fees as a prize.
However, there is a major trap hidden here. The Bitcoin system is designed to automatically increase the difficulty of the problem as the number of participants increases. It's like the test questions getting harder and harder based on the test taker's skill level.
• Block Generation Reward: 3.125 BTC (halved approximately every 4 years)
• Next Halving: Scheduled for 2028 (reward reduced to 1.5625 BTC)
• Average Block Generation Time: Approximately 10 minutes
• Total Network Hash Rate: Continues at All-Time High
An even harsher reality is the 'halving' system. As the mining reward is halved approximately every 4 years, the amount of Bitcoin you can receive with the same amount of effort continues to decrease. This is a great system that increases the scarcity of Bitcoin, but it is becoming an increasingly big challenge for miners.
⚠️ The harsh reality of mining in 2025 — too harsh for individuals
To be honest, Bitcoin mining in 2025 is not an area that individual investors can easily challenge. There are several key barriers that create a high entry barrier.
As the number of miners participating in the network increases exponentially, the probability of successfully mining a block has become almost like a lottery for individuals. For example, the current difficulty has increased by more than 300% compared to 2021.
Mining is now virtually impossible with a regular computer or graphics card. Dedicated ASIC equipment such as Antminer S19 Pro or Whatsminer M50 is essential, but an initial investment of 3 to 5 million won per unit is required.
When mining based on domestic electricity rates, most situations occur where electricity costs exceed mining revenue. In particular, losses increase when the progressive rate system is applied in the summer.
ASIC miners are much noisier than a 24/7 fan, and they generate a lot of heat. They have environmental constraints that make them impractical to operate in a typical home.
Governments around the world are tightening regulations on mining due to environmental and energy consumption concerns. China’s mining ban is a prime example.
π‘ Still Opportunities Remain — Not All Is Hopeless
But it’s not all hopeless. There are still ways to make money through Bitcoin mining, provided certain conditions and environments are met. However, these opportunities are very limited and require a strategic approach.
Places like Texas, Quebec, and Iceland have very low electricity prices due to their abundant renewable energy. Mining profitability can be significantly improved at electricity prices of 3 to 5 cents per kWh. Some investors are even moving to these areas or forming local partnerships.
Companies that operate large-scale mining farms can operate at much lower costs than individual miners through bulk equipment purchases, power contracts, and cooling system optimization. Listed mining companies such as Marathon Digital and Riot Blockchain are representative examples.
When Bitcoin price rises, mining profitability also improves. In particular, high yields can be temporarily recorded during periods of rapid price rises. However, this is also an unstable factor that greatly depends on price volatility.
Eco-friendly mining using renewable energy such as solar and wind power is gaining attention. This is a direction that can reduce regulatory risks in the long term and be positively evaluated from an ESG investment perspective.
The power efficiency of next-generation ASIC chips is continuously improving. In addition, new technologies such as liquid cooling and AI-based optimization are contributing to reducing mining costs.
π― Realistic Alternatives for Individual Investors
So what options can individual investors consider? In addition to purchasing and operating mining equipment directly, there are several realistic methods.
This is a method in which several miners join forces to mine and share rewards according to their contribution when successful. Representative examples include F2Pool, Antpool, and Slush Pool. It is more stable than individual mining, but there are still initial investment and operating costs.
This is a method of renting a mining service remotely without purchasing equipment. There are services such as Genesis Mining and Hashflare, but there are many fraudulent companies, so you need to be careful when choosing. It is recommended to carefully check the contract terms and be suspicious of places that offer too good terms.
Instead of Bitcoin, you can consider mining altcoins that have relatively low entry barriers. Litecoin (LTC), Kaspa (KAS), and Dogecoin (DOGE) are alternatives. However, you should also consider the marketability and long-term prospects of these coins.
Instead of mining directly, you can also invest in stocks of mining companies. Mining companies such as Marathon Digital Holdings (MARA), Riot Platforms (RIOT), and CleanSpark (CLSK) show a high correlation with the price of Bitcoin, while also allowing you to utilize professional operational know-how.
π The Reality of Profitability Calculations — Mining in Cold Numbers
If you’re considering mining, you need to do cold, hard numerical analysis rather than emotional judgment. If you calculate the actual profitability, you will see that the reality is harsher than you think.
Initial investment cost:
• ASIC equipment: approximately 4 million won
• Power facilities and cooling: approximately 1 million won
• Other installation costs: approximately 500,000 won
• Total initial investment: approximately 5.5 million won
Monthly operating cost:
• Electricity bill (3250W × 24 hours × 30 days × 120 won/kWh): approximately 280,000 won
• Other operating costs (Internet, maintenance): approximately 50,000 won
• Total monthly cost: approximately 330,000 won
Estimated Monthly income (based on $45,000 Bitcoin):
• Approximately 0.008 BTC × $45,000 = approximately KRW 480,000
• Net income: KRW 480,000 - KRW 330,000 = approximately KRW 150,000
Recovery period: approximately 37 months
The above calculation assumes ideal conditions, and in reality, you need to consider the increasing mining difficulty, Bitcoin price fluctuations, equipment aging, and failure risks. In particular, considering the domestic electricity rate progressive system, the actual income may decrease even more.
π Global mining trends and future prospects
The Bitcoin mining industry is changing rapidly. Beyond simple computer performance competition, various factors such as energy efficiency, environmental friendliness, and regulatory compliance are determining competitiveness.
The US becomes a mining hub: After China’s mining ban, the US has emerged as the world’s largest mining country. In particular, Texas is becoming a new mecca for mining companies with its abundant renewable energy and business-friendly policies.
The spread of eco-friendly mining: Since Tesla’s Elon Musk announced the suspension of Bitcoin payments, interest in eco-friendly mining has increased rapidly. According to the Bitcoin Mining Council, approximately 58% of all mining currently uses renewable energy.
Increased participation by institutional investors: Large asset management companies such as BlackRock and Fidelity are indirectly influencing the mining industry by launching Bitcoin ETFs. This is likely to be a factor in increasing the stability and professionalism of the mining industry in the long term.
π― Conclusion — Bitcoin Mining, Be Careful, But Leave Hope
As of 2025, Bitcoin mining is definitely not the 'dream business' it was in the early days. The days when individuals could easily make money with a few computers at home are long gone.
However, it is not completely impossible. It is still a business model that can be profitable if supported by the right environment, sufficient capital, and professional approach. Especially if you believe in the long-term increase in the value of Bitcoin, mining is a meaningful way to participate in the Bitcoin network and receive rewards beyond simple profit generation.
Key points to remember when considering mining:
• Thorough profitability analysis and risk management are essential
• Initial investment should be a surplus that you can afford to lose
• Calculate considering all costs such as electricity, equipment costs, and taxes
• Continuous monitoring of technological changes and regulatory trends
• Consider mining pools or related investment products rather than mining directly
Ultimately, Bitcoin mining has become a 'professional business' rather than an 'easy money-making' method. However, it is still an important role that plays a key role in the Bitcoin ecosystem, and I think it is an area worth challenging if you have the right approach and sufficient preparation.