Is cryptocurrency mining still profitable in 2025?

The motivation behind cryptocurrency mining

It’s the money, of course. Cryptocurrency mining is the process of validating transactions on a proof-of-work blockchain network, like Bitcoin or Ethereum Classic. 

Miners play a crucial role in securing the network and, in return, are rewarded with newly minted coins. 

Mining began in 2009 when Bitcoin’s creator, Satoshi Nakamoto, mined the very first block using a standard computer. At the time, it was a niche activity accessible to tech-savvy hobbyists. Today, it has transformed into a global industry dominated by specialized hardware, sprawling data centers and a mix of professional operations and casual enthusiasts.

At its heart, mining is driven by the principle of supply and demand. When demand for a cryptocurrency is high and the number of active miners is low, rewards are more attractive. 

But as more miners enter the network, competition intensifies. This raises mining difficulty, requires more advanced (and expensive) hardware, and increases energy consumption — often leading to shrinking profit margins.

This creates a delicate balancing act where mining remains “just profitable enough” to keep participants engaged. 

This idea can be illustrated using a supply and demand graph, where the entry of new miners results in lower earnings across the board. Note that values are representative and do not correspond to real-world figures.

Did you know? Some people choose to mine cryptocurrency just out of technological curiosity. After all, mining offers a hands-on way to learn about blockchain technology and decentralized networks.

Factors influencing cryptocurrency mining profitability

The truth is, there’s no single “most profitable coin to mine.” Volatility, energy costs, hardware advancements, mining reward halvings and regulations all contribute to rapidly changing profits. The profitability of mining a coin like Ethereum Classic can quickly surpass Bitcoin, and vice versa.

Let’s explore the main factors that influence mining profitability across the crypto market.

Volatility

Cryptocurrencies are known for their significant price volatility. For instance, in November 2022, Bitcoin’s (BTC) 10-day volatility exceeded 100%, indicating substantial price swings within a short period. During periods of extreme price drops, mining profits can fall so low that even efficient operations struggle to remain viable.

Conversely, price spikes can encourage more miners to join the network, increasing mining difficulty and competition.

For example, back in January 2024, mining Kaspa with 9.2 terahashes per second (TH/s) of KHeavyHash hash power was reported to yield approximately $69 per day, making it suddenly one of the most popular coins among miners.

Energy costs

Electricity costs are the largest ongoing expense for miners, and coins with high energy demands are only profitable in areas with cheap or renewable energy.

Mining Bitcoin, due to its difficulty, requires an incredible amount of power, making it difficult to sustain in regions with high energy prices. On the other hand, Ethereum Classic, Monero and Ravencoin, with their more energy-efficient algorithms, are better options for miners in areas with expensive electricity.

Did you know? Countries such as Iran have become hotspots for Bitcoin mining due to their low electricity costs, with mining a single Bitcoin costing as little as $1,324.

Hardware efficiency

The type of mining hardware plays a crucial role in determining profitability. Bitcoin mining is dominated by ASICs, which, while efficient, are costly and accessible mostly to large-scale operations. Aspects such as efficient cooling systems and housing units also ought to be considered, as they directly impact hardware performance and profitability.

Ethereum Classic (ETC) and Ravencoin (RVN), on the other hand, can be mined with GPUs, which are more affordable and versatile.

The regulatory environment

Countries regulate cryptocurrency mining in vastly different ways, with some introducing supportive policies and others imposing strict limitations.

For instance, under President Donald Trump’s upcoming administration, the US has adopted a more crypto-friendly stance. The administration aims to position the US as a global leader in Bitcoin mining by offering incentives such as tax breaks and access to affordable energy resources. This approach is designed to strengthen the domestic crypto industry while ensuring financial stability and security.

Conversely, Russia has taken a more restrictive approach. Effective Jan. 1, 2025, the Russian government banned cryptocurrency mining in 10 regions, a prohibition set to last until March 15, 2031. This decision is intended to prevent energy shortages and mitigate the environmental impact of intensive mining activities.

Is Bitcoin mining relevant in 2025?

Not at this moment, but it will probably change soon. As of January 2025, the echoes of the 2024 Bitcoin halving event, which reduced block rewards from 6.25 BTC to 3.125 BTC, are ringing true. 

This reduction in rewards, combined with a saturated market of miners, has increased the cost to produce one Bitcoin to around $106,000, above prices hovering around $102,175.

Consequently, miners are experiencing tightened profit margins, leading to strategies such as stockpiling coins to ride out the profit squeeze.

To maintain profitability, miners are focusing on operational efficiency, investing in advanced hardware and seeking regions with lower energy costs. Additionally, some are diversifying by leasing data center capacity to AI companies, leveraging their existing infrastructure to generate alternative revenue streams.

Is altcoin mining still worth it in 2025?

Yes, but that, too, might change. Altcoin mining remains a viable option in 2025, offering opportunities for profitability, especially for miners seeking alternatives to Bitcoin. Cryptocurrencies such as Ethereum Classic (ETC) and Monero (XMR) are still among the top altcoins to mine.

Ethereum Classic (ETC)

Ethereum Classic, not to be confused with the post-merge Ethereum mainnet that operates on proof-of-stake (PoS), provides miners an opportunity to earn with its block reward of 2.56 ETC. Mining Ethereum Classic is considered much more accessible compared to Bitcoin because it’s feasible to mine with readily available and less expensive GPUs. 

Additionally, ETC has a lower mining difficulty and a smaller network hashrate, meaning individual miners face less competition and have a higher chance of earning rewards with less powerful hardware.

However, how much you make depends on your hardware, electricity costs and how efficiently you run your setup. Tools like WhatToMine can help you figure out potential profits based on your specific gear and energy rates.

Monero (XMR)

Monero’s RandomX algorithm keeps things accessible by favoring CPU mining instead of expensive ASICs. It’s a solid pick for smaller miners or those just starting out. Earnings hinge on hardware efficiency, energy consumption and market trends. Use a mining calculator, such as CoinWarz, to see how your setup stacks up and make adjustments to stay competitive.

However, staying informed about market trends and technological advancements is crucial for maximizing profitability when it comes to altcoins, which are traditionally even more volatile than Bitcoin.

Pool mining, cloud mining or solo mining: Which is better now?

In 2025, cryptocurrency miners have three primary methods to choose from: solo mining, pool mining and cloud mining. Each approach has distinct advantages and disadvantages, influenced by factors such as hardware investment, technical expertise and desired income stability.

Solo mining

Solo mining is when an individual miner uses their own hardware to mine cryptocurrency independently, without joining a group.

Pros:

• Autonomy: Solo miners have complete control over their operations, retaining all rewards without sharing.
• No fees: There’s no obligation to pay pool fees, potentially increasing overall earnings.

Cons:

• High variance: Earnings can be unpredictable, with extended periods without rewards, making it less suitable for those seeking consistent income.
• Resource intensive: Requires significant computational power and energy, often necessitating substantial upfront investment in hardware.

Pool mining

Pool mining involves joining a group of miners who combine their computational power to solve blocks faster. Rewards are shared among members.

Pros:

• Consistent rewards: By combining resources, miners receive more regular payouts, reducing income variability.
• Lower entry barrier: Allows participation with less powerful hardware, making it accessible to a broader range of miners.

Cons:

• Fees: Pools typically charge fees, which can reduce individual earnings.
• Centralization concerns: Large pools may contribute to network centralization, potentially impacting the decentralized ethos of cryptocurrencies.

Cloud mining

Cloud mining allows users to rent mining power from a service provider instead of owning hardware.

Pros:

• No hardware required: Eliminates the need for personal mining equipment, reducing initial setup costs and maintenance responsibilities.
• Accessibility: Enables individuals to participate in mining without technical expertise or significant capital investment.

Cons:

• Potential scams: The industry has seen fraudulent platforms; thorough research is essential before committing to a service.
• Lower profit margins: After service fees and contract costs, profits can be modest compared to direct mining operations.

Did you know? In 2018, the Kodak KashMiner was introduced as a Bitcoin mining device at the Consumer Electronics Show (CES). Promoted by Spotlite USA, it offered customers the opportunity to rent the miner for an upfront fee of around $3,400, with promises of substantial monthly returns over two years. However, the scheme faced significant criticism and was labeled a “scam” due to unrealistic profit projections and lack of transparency. Kodak later clarified that the KashMiner was never officially licensed, and the project was ultimately discontinued.

For most miners, pool mining strikes the best balance between effort, risk and reward. However, the best approach ultimately depends on personal circumstances, so evaluating your situation and thoroughly researching each option is essential.

Future trends in cryptocurrency mining

Cryptocurrency mining is an industry in constant flux, driven by advancements in technology, environmental priorities and shifting market dynamics. 

Technological innovations top the list of discussion points. Quantum computing, for instance, has become a hot topic, with Google’s quantum chip, Willow, making headlines. Quantum computers indeed hold the potential to both disrupt and revolutionize the crypto industry.

Meanwhile, companies like Nvidia are developing advanced GPUs that enhance power efficiency and performance, promising to lower operational costs and increase mining output.

Sustainability is another critical focus for the future of mining. Over 50% of mining operations now utilize renewable energy, a trend expected to grow as the industry prioritizes greener practices. In addition, new energy-efficient consensus mechanisms like proof-of-stake (PoS) are gaining traction, aiming to reduce the environmental footprint of traditional mining methods.

Market dynamics also play a crucial role in shaping mining profitability. Mining profits depend on balancing supply and demand. High demand and fewer miners lead to better earnings, while lower demand or increased competition can compress profit margins. 

Fortunately, global crypto adoption continues to grow, with a projected compound annual growth rate (CAGR) of 12.5% through 2030, signaling a steady rise in demand for digital assets.

Regulations are a double-edged sword for miners. In some regions, stricter policies on energy use and emissions are pushing mining activity elsewhere. However, areas offering renewable energy and miner-friendly rules are becoming thriving hubs. 

Regulatory frameworks such as Markets in Crypto-Assets (MiCA) can also build institutional trust in crypto, potentially attracting more large-scale investors and strengthening the market. In this way, well-designed regulations can benefit cryptocurrency mining.

The bottom line is that cryptocurrency mining can still be a profitable endeavor in 2025, provided miners are willing to put in the effort and remain adaptable.