Bitcoin mining costs are surpassing the market value of mined coins, threatening the financial viability of the operation. A CoinShares report indicates that in 2025, average energy costs for mining will exceed $137,000 per Bitcoin, while the coin itself is valued around $94,000. Centralization of wealth is now stark, with the top 8% of wallets holding 99% of Bitcoin, negating the decentralised ethos of the currency.
Bitcoin, once celebrated as a revolutionary form of currency, is now grappling with a stark reality: mining it is becoming prohibitively expensive. Initially seen as a simple way to earn some cash with a basic graphics card, miners now face soaring energy costs that overshadow potential profits. The situation has shifted dramatically as the incentives for mining decrease alongside each Bitcoin mined, given there’s a cap of 21 million coins.
According to a report from CoinShares, a cryptocurrency investment firm, by 2025, the cost to mine a single Bitcoin will exceed its market value. At present, the average cost of electricity to mine a Bitcoin stands around $137,000, while its selling price hovers at approximately $94,000. This disparity poses significant challenges for the average miner excited by the prospect of financial freedom.
Even those big operations, with extensive setups and industrial-grade cooling systems, face slim margins. For them, the mining cost is roughly $82,000 at best—a figure that raises questions about the feasibility of continuing such operations. This scenario has led many to reconsider whether mining is still a worthwhile investment.
Interestingly, it seems that the only entities benefiting from this trend are the so-called “whales.” Just 8 percent of Bitcoin wallets now control about 99 percent of the total supply. This centralization contradicts the original vision of Bitcoin as a tool for decentralised finance, widening the gap between wealthy investors and the average miner.
Once envisaged as a monetary revolution powered by decentralisation and personal sovereignty, Bitcoin now resembles a highly speculative commodity. Many ordinary investors who poured their savings into this digital currency find themselves uncertain about their prospects for returns. In the end, Bitcoin’s lofty promises of democratic financial inclusion seem to have succumbed to the whims of the wealthy, who continue amassing profit while the average holder grapples with uncertainty over their investments.
