In December, Bitcoin set a new price record, attracting attention even from those who had never been interested in cryptocurrencies. Everyone wants to own BTC today, and as we know, Bitcoin can either be bought on an exchange or mined. “What is mining, and what are its prospects in 2025?” Timofey Grigorenko, head of Ubit, a company active in the cryptocurrency mining market for several years, provides answers.

Let’s start by understanding what mining is. Mining (from the English word “mining”) is the process of creating new blocks in the blockchain of cryptocurrencies such as Bitcoin. It involves solving complex mathematical problems using computing power (specialized equipment like ASIC miners or GPUs). For successfully solving these problems, miners are rewarded with cryptocurrency.

While this definition is accurate, let’s delve deeper into what miners do and why it is so important. Miners ensure the blockchain operates smoothly by performing two key tasks:

1. Transaction Processing: Each time someone sends a coin from one wallet to another, there must be a mechanism to record these transactions—essentially maintaining a ledger where the sender’s balance decreases by one coin, and the recipient’s balance increases by one. This is similar to how a bank’s server operates. 
2. Acting as a Distributed Accountant: This is where the bulk of computational power goes and the aspect that is hardest to explain. A blockchain is a database that stores an ever-growing list of records (blocks). These records are arranged in strict sequence, with each subsequent block containing information from the previous one. This database is stored on users’ computers (it doesn’t have a central server), and every participant with a copy gets all new records added to their copies. 

A Simple Example with Apples

• Imagine Sasha buys 6 apples.
• This fact is recorded in the blockchain as Block #1 and distributed to Kolya, Vitya, Sveta, Snezhana, and Margarita (network participants). Now they all know Sasha has 6 apples.
• Sasha gives Kolya 5 apples to share with his friends. This is recorded in Block #2, which includes a unique identifier for Block #1. The block is sent to the network participants.
• Kolya gives Vitya 1 apple, which is recorded in Block #3, referencing Block #2, and distributed across the network.
• Kolya gives Sveta 3 apples. This is recorded in Block #4, referencing Block #3, and shared with everyone.
• Sveta, however, eats all 3 apples herself during a midnight craving. When Snezhana and Margarita come for their promised apples, Sveta blames Kolya, claiming he only gave her 1 apple. But the blockchain tells a different story, and Snezhana and Margarita know Sveta ate their apples!

This illustrates how the blockchain protects against fraud within the network, making transactions simple and transparent—a feat impossible without miners, who maintain these records and keep the ledger secure.

Growing Complexity
As Bitcoin’s popularity and transaction volume grow, so does the number of records, which in mining terms is called increasing difficulty. It requires more resources to find the necessary numbers, leading to increasingly powerful devices. For example, the modern ASIC miner Antminer S21 XP Hydro has a processing power of 470 terahashes, meaning it checks 470 trillion combinations per second and consumes almost six kilowatts of electricity per hour.

The Antminer S21 costs tens of thousands of dollars and generates about $30 daily in revenue before electricity costs. Its payback period is roughly one year at free electricity rates, though rising difficulty and reduced income must also be considered (balanced by potential Bitcoin price increases).

Is Bitcoin Mining Worth It in 2025?
Bitcoin mining has become too costly for individuals due to high entry barriers and expensive equipment. The top ASIC miner today, the Antminer S21E XP Hyd 3U, can generate over $50 daily before expenses but costs over $100,000 and consumes 11 kilowatts of energy.

Solo mining is an option, but it’s more like a lottery. There’s a slim chance your device will solve the next block, and one day, you might find 3 BTC in your wallet—but this is rare. To achieve steady income, miners join pools, where earnings depend on device power.

For those unable to afford top-tier hardware, GPU mining might be an alternative, though Bitcoin mining is off the table with GPUs.

Despite increasing difficulty, cryptocurrency mining remains a lucrative opportunity, thanks primarily to Bitcoin’s price growth. Analysts predict BTC will reach $150,000–$200,000 per coin in 2025, with Ark Invest CEO Cathie Wood suggesting it could exceed $1 million by 2030.

Ubit has been making mining accessible to everyday users for years. Even those unfamiliar with cryptocurrencies or unable to afford an ASIC miner can mine BTC by renting computing power from Ubit’s mining center. This eliminates the need to maintain equipment or pay high electricity bills, as Ubit enjoys discounted energy rates. As a result, mining Bitcoin becomes even cheaper than buying it on an exchange.

The trend for 2025: popularizing Bitcoin and cryptocurrencies. Will mining difficulty continue to rise? Definitely. Will mining remain profitable? Absolutely. Should you start mining now, and how? The answer depends on your preferences and financial capabilities, but the mining market today offers solutions for all knowledge and budget levels.