Are mining machines more valuable than Bitcoin mining? The real dilemma faced by individual miners in 2026

Have you ever dreamed of easily mining Bitcoin with a computer and waiting for BTC income? Unfortunately, reality is far from ideal. Today, individual miners with mining rigs face a harsh truth: even if you buy a professional mining machine, running it daily may still result in losses. This article will analyze whether individual miners can still mine Bitcoin in 2026 and the true costs of this “gold rush.”

From CPU to ASIC: 20 Years of Mining Evolution

What is the essence of Bitcoin mining? Simply put, miners use mining rigs to keep the Bitcoin network’s ledger, and the system rewards BTC based on proof of work (PoW).

Mining has gone through three technological revolutions:

2009-2012: CPU Mining Era
Anyone could mine with a regular computer processor. This was the only period when Bitcoin could be called “free mining.” The network’s total hash rate was very low; Satoshi could mine thousands of BTC with a laptop.

2013: Rise of GPU Miners
Graphics cards’ parallel computing power far exceeded CPUs. GPU mining became popular, increasing hash rate by over ten times, and CPU miners gradually exited.

2013 to Present: ASIC Dominance
Specialized integrated circuits (ASICs) designed specifically for Bitcoin mining emerged, leading to another leap in hash rate. ASIC miners like Avalon and AntMiner became industry standards, completely changing the mining landscape.

Today, mining rigs cost from $1,000 to $20,000, with complex performance metrics and rapid iteration cycles—top-tier models from last year may be outperformed by new releases this year. What does this mean? Your hardware investment is always depreciating.

Why Can’t Personal Miners Mine Bitcoin?

The key issue is total network hash rate. Currently, Bitcoin’s total hash rate exceeds 600 EH/s (exahashes per second), equivalent to the combined computing power of all personal computers worldwide.

Imagine this scenario: you use a standard mining rig to compete in a global mining contest against large farms with millions of machines. Every time a new block is mined (roughly every 10 minutes), all miners compete for the right to record that block. What are your chances of being selected?

Numbers speak:

• Monthly mining profit for a mid-range miner: $10–$50
• Monthly electricity cost: $200–$300
• Miner depreciation: $50–$100
• Final result: monthly loss of $200–$400

Unless you join a mining pool. Mining pools are organizations that combine the hash power of many miners and distribute rewards proportionally. Major pools include F2Pool, Poolin, AntPool, etc. Joining a pool provides more stable income but is still often less than electricity costs—meaning you may still lose money.

How Big Is the Gap Between Individual Miners and Large Farms?

This comparison can be disheartening.

A medium-sized farm with 3,000 machines has a total hash rate of about 300 PH/s. In contrast, a single machine might have 100–150 TH/s—about 2,000–3,000 times less. The farm’s monthly revenue can reach $500,000–$1,000,000, while an individual miner earns less than $100 per month.

Large farms have advantages beyond sheer scale, including lower costs:

• Electricity: Negotiating with power companies, they can pay as low as $0.02 per kWh, while individuals pay $0.10–$0.30.
• Operations: Professional teams maintain equipment, reducing failure rates; individuals often struggle.
• Financing: Large farms can access industry funds; individuals pay out of pocket.

In short, competing with large farms is like a craft workshop trying to compete with an industrial assembly line.

How Much Does It Cost to Mine One BTC?

Cost breakdown includes four parts:

1. Hardware costs
High-end miners like Antminer S19 Pro cost around $2,500–$3,000, with a lifespan of 3–5 years. Over 5 years, annual depreciation is about $600, or $50 per month.

2. Electricity
Mining one Bitcoin consumes roughly 15,000 kWh. At $0.08 per kWh, electricity costs about $1,200 per BTC.

3. Cooling and maintenance
Cooling systems, network maintenance, labor—monthly costs range from $200 to $500.

4. Pool fees
Mining pools typically charge 1–2.5% of earnings.

Overall cost: Industry data suggests that by the end of 2025, under global average conditions, the total cost to mine one Bitcoin will be approximately $90,000–$120,000. Meanwhile, the spot price of BTC is around $70,000–$80,000. Do you see the problem? Mining is no longer profitable.

Post-2024 Halving, Miners Face a “Surrender Wave”

Bitcoin undergoes a “halving” every four years—reducing block rewards by half. In April 2024, Bitcoin’s fourth halving occurred, cutting the block reward from 6.25 BTC to 3.125 BTC, directly halving miners’ income.

What are the consequences?

Many small and medium miners shut down. Those with high electricity costs or outdated equipment become unprofitable and are forced out. In the short term, total network hash rate drops by 10–15%, but is then replaced by more efficient new miners. This is natural selection—small miners are being eliminated.

Transaction fees become a lifeline. Early 2024 saw a surge in on-chain transaction fees due to Bitcoin inscription craze, with fees accounting for over 50% of miners’ total revenue. But this high fee rate is unsustainable; it has since fallen back to 5–10%.

Mining equipment accelerates iteration. To cut costs, manufacturers release more efficient models, causing secondhand miner prices to plummet. A miner bought for $3,000 last year may only be worth $1,500 now.

Will Individual Miners Survive in 2026?

Honestly, it’s unlikely.

To profit from traditional mining, you need to meet three conditions:

Condition 1: Access to cheap electricity
Relocate to Iceland, Kazakhstan, Iran, or other regions with extremely low power costs—$0.02–$0.04 per kWh, reducing costs by over 50%. But this involves policy risks and operational challenges.

Condition 2: Large-scale investment
Purchase hundreds of machines, with a total investment of at least $1 million. Only such scale can compete with big farms. Most individuals can’t raise this amount.

Condition 3: Embrace new technology
Buy the latest miners with higher efficiency—yet these are more expensive, and the return on investment takes longer.

Most individual miners cannot meet all three conditions.

Is There Still a Role for Mining Machines?

Yes, but the focus is shifting.

Direction 1: Managed mining
Buy mining rigs and outsource operation to third-party companies. You invest in hardware, and the company handles electricity, cooling, maintenance, sharing profits proportionally. This reduces technical barriers but yields low returns (annual ROI of 5–15%).

Direction 2: Renting hash power instead of buying rigs
Use platforms like NiceHash or Genesis Mining for cloud mining. No hardware purchase, just rent hash power daily or monthly. Costs are flexible, but profit margins are tiny.

Direction 3: Multi-coin mining
Mine multiple cryptocurrencies like Dogecoin, Litecoin, using automatic switching algorithms. Sometimes these coins offer higher returns, but with increased risk.

Abandon Mining Rigs, Try Bitcoin Trading

If you want to profit from Bitcoin, instead of buying expensive mining equipment, consider trading:

Why is trading better than mining?

• Zero hardware costs: no investment in rigs, cooling, or electricity
• Flexible: buy and sell spot, go long or short, seize opportunities
• Quick liquidity: unlike mining, which takes months to recoup, trading can be instant
• Risk management: use stop-loss and position control to reduce risks

Real-world comparison:

• Mining: Invest $100,000 in hardware and electricity, earning $50–$200 per month, with a payback period of 2–5 years
• Trading: No initial investment (or minimal), and if you grasp market trends, monthly returns can reach 5–50% (depending on strategy)

Of course, trading requires learning and skill, but at least you won’t lose money due to hardware depreciation.

Summary

Bitcoin mining was once an opportunity for ordinary people, but now it has become an industrialized, capital-intensive game. Buying mining rigs for personal mining is nearly unprofitable by 2026.

Unless you have three things: substantial capital (over $1 million), access to cheap electricity, and professional operation skills, using a regular mining rig to mine Bitcoin is like digging a mine with your hands—investment and output are completely mismatched.

Instead of dreaming of “free mining,” face reality: learn trading, understand market rhythms, and participate in Bitcoin wealth through market participation.