Bitcoin mining costs have become prohibitively high

In the past, Bitcoin was hailed as the currency of the people, a libertarian ideal free from government or banking control. It represented a decentralized world of peer-to-peer transactions and digital autonomy. However, a sobering reality is dawning on the market: the profits from mining Bitcoin are overshadowed by the costs associated with energy consumption.

The dynamics used to be straightforward. Let your graphics card work through some calculations, and presto, easy money. The energy expenses were reasonable, and the Bitcoin received in return for a slightly higher power bill would cancel out in the long run, so why worry? Yet, Bitcoin has a limit of 21 million coins. With each coin mined, the reward diminishes, and the complexities of the process increase.

In 2025, the cost to mine a single Bitcoin exceeds the revenue generated from its sale, as stated in a report by CoinShares, a cryptocurrency investment company. For the average crypto enthusiast with a basic setup and aspirations of owning luxury cars, the price of electricity required to mine a Bitcoin valued at $94,000 is approximately $137,000.

Even for the prominent players with vast mining operations and sufficient cooling systems, the most favorable scenario results in a mining cost of $82,000. This slim profit margin probably no longer justifies the investment.

The primary beneficiaries of this situation are the whales—the top 8% of wallets holding about 99% of all Bitcoin. The vision of decentralization has, in fact, led to the extreme centralization of wealth in the hands of the already affluent. Therefore, Bitcoin has deviated from its original promise as a revolutionary financial system and has devolved into a speculative pyramid scheme, allowing wealthy individuals to playact as cyberpunk rebels while accumulating substantial wealth at the expense of the average investor.

Ultimately, the dream of Bitcoin as a liberating monetary force has faded, giving way to a network dominated by a select few who exploit the system for their own gain. The days of easy money from mining Bitcoin are long gone, replaced by a reality where the costs far exceed the returns, making it unfeasible for the average individual to profit significantly from this once-promising technology.