The world of cryptocurrency mining is experiencing a seismic shift — one driven by surging digital asset prices, unprecedented demand for hardware, and an escalating arms race for computational power. From secondhand mining rigs fetching sky-high prices to manufacturers scrambling for chips, the current boom echoes the gold rushes of old, where fortune-seekers flock to uncharted territories in pursuit of wealth.
Today’s prospectors don’t wield pickaxes — they deploy ASICs and GPUs, powered by electricity and ambition. And just like in 19th-century California, scarcity, speculation, and soaring returns define the landscape.
The Rise of the Modern Miner
For 45-year-old miner Li Wen (a pseudonym), Bitcoin mining has transformed his life. In June 2020, he invested 70,000 yuan (~$10,000) in ten used WhatsMiner M20S rigs, each delivering 65 terahashes per second (TH/s) of computing power. These machines now generate roughly one Bitcoin annually — worth over $300,000 at current valuations.
Encouraged by early returns, Li Wen reinvested 700,000 yuan into additional mining equipment by year-end, outsourcing operations to a mining farm in Inner Mongolia. Within eight months, he accumulated more than 2.5 BTC — a stash valued at over $750,000.
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Li Wen isn’t new to the crypto space. Having entered in 2017, he witnessed extreme volatility and chose mining as a more stable alternative to speculative trading. Unlike volatile price swings on exchanges, mining offers predictable daily yields — a key draw for long-term holders.
Mining Hardware in High Demand
Today, acquiring mining equipment has become nearly impossible. What was once readily available in Beijing’s physical shops is now sold out across retail and manufacturer channels.
“Many people are booking directly from factories — often in group buys,” Li Wen explains. “Even pre-production units are being snapped up before they leave the factory.”
Bitmain, manufacturer of Antminer devices, lists all major Bitcoin miners as out of stock, with delivery estimates pushed to late 2025. Similarly, Canaan’s Avalon miners have order backlogs extending into the same period. Secondhand markets reflect this scarcity: the Antminer S19 95T, priced at ~$2,800 on Bitmain’s site, resells for over $7,000 — more than double its original cost.
Futures contracts have surged even more dramatically. In March 2020, the S19 futures traded around $1,800; by January 2025, prices hit $7,500 per unit — a 3x increase.
Mining farms report explosive growth in order sizes. Where clients once purchased 50–200 units, orders now start at 1,000 rigs — with one massive purchase reaching 5,000 machines.
This frenzy follows the painful "Black Thursday" crash of March 2020 ("312 Event"), when Bitcoin dropped 25% in a day and mining profitability collapsed. Hundreds of thousands of rigs shut down as hash price fell below electricity costs. Used miners that once sold for scraps now command premium prices — proof of market resilience.
“Back then, everyone wanted to dump their ‘junk,’” Li Wen recalls. “Now? Even old machines sell for 20,000 yuan each.”
Despite hardware price hikes of 2–3x, Bitcoin’s price has risen over 4.5x since mid-2024 — shortening payback periods from 12 months to under 8 months for efficient rigs.
Ethereum’s GPU Gold Rush
While Bitcoin mining relies on specialized ASICs, Ethereum mining remains GPU-dependent — making graphics cards the new frontier.
Peter (a pseudonym), a 25-year-old dual-miner, plans to invest $775,000 to acquire over 1,300 high-end GPUs for Ethereum mining. “GPUs are the pickaxes of Ethereum mining,” he says.
This demand has strained global GPU supply. NVIDIA’s RTX 30-series and AMD’s RX 6000 cards remain scarce — much to the frustration of gamers.
In response, NVIDIA announced measures to limit ETH mining efficiency on consumer GPUs and introduced its CMP (Cryptocurrency Mining Processor) line — mining-optimized chips without display outputs.
Even so, shortages persist. Some Ethereum mining operations have resorted to extreme measures: purchasing thousands of gaming laptops solely to extract their GPUs.
“An Ethereum mining rig can be worth more than the laptop it came from,” says Siming Shang, CEO of Mars Pool. “When GPU scarcity hits this level, creative solutions emerge.”
Mars Finance founder Wang Feng notes that chipmakers like TSMC and Samsung historically treated crypto mining as a niche market. “Even at today’s prices, global mining revenue pales next to smartphone chip sales,” he observes.
Yet with sustained interest in Bitcoin and Ethereum, semiconductor firms may soon reevaluate their stance — especially as ASIC and GPU demand reshapes supply chains.
Understanding Mining: A Game of Hashpower
To outsiders, Bitcoin mining seems mysterious. At its core, it’s a decentralized ledger system — blockchain — maintained by miners who compete to validate transactions.
Every ~10 minutes, miners race to solve a cryptographic puzzle (SHA-256). The winner adds a new block to the chain and earns newly minted Bitcoin as a reward.
But solving this puzzle requires immense computational power. A single machine could take centuries to succeed alone — hence the rise of mining pools.
Pools combine thousands of miners’ hashpower, distributing rewards proportionally based on contributed work. Popular models include PPLNS (Pay Per Last N Shares) and PPS (Pay Per Share).
Hashrate concentration is growing:
- Bitcoin: Top four pools (F2Pool, Poolin, BTC.com, AntPool) control over 55% of total hashrate.
- Ethereum: SparkPool, Ethermine, and F2Pool together command 75.5%.
Network hashrate continues climbing:
- Bitcoin: Up ~36% from early 2024 (112.93 EH/s → 153.48 EH/s)
- Ethereum: Up 98.8% (141.55 TH/s → 281.37 TH/s)
Ethereum’s faster growth stems from lower entry barriers — GPU mining allows broader participation compared to expensive ASICs.
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Miners vs. Traders: Faith vs. Speculation
According to Wang Feng, miners differ fundamentally from traders.
“Miners are believers,” he says. “They view mining as dollar-cost averaging — steady accumulation without emotional trading.”
Data from Mars Mining shows over 90% repurchase rate among veteran miners. Some upgrade rigs multiple times within months.
Mining offers predictable economics: a rig lasts ~4 years; returns depend on electricity cost, hash rate, and coin price. As Shang puts it: “It’s like buying Bitcoin at 30–40% discount — but delivered gradually.”
Traders chase volatility with leverage and futures — often losing everything. Miners focus on long-term accumulation.
Still, risks exist. Market bubbles can burst. In 2018, Bitcoin crashed from $20K to $3K; many miners sold rigs for scrap. Li Wen avoided that fate by staying cautious during the 2017 boom.
But those who held through the bear market saw their assets multiply 18x by early 2025.
“Faith matters,” Li Wen reflects. “True miners don’t panic-sell.”
DeFi’s Disruptive Influence
Decentralized Finance (DeFi) introduces a new form of “mining”: liquidity mining.
Instead of hashpower, users provide crypto assets to liquidity pools and earn token rewards — effectively “money earning money.”
DeFi’s Total Value Locked (TVL) has surged from $14 billion in late 2024 to over **$55 billion** by early 2025.
While DeFi appeals to non-technical users due to lower entry costs, its complexity limits mass adoption. Still, it draws capital away from traditional mining — especially among newer participants.
Wang Feng believes DeFi and mining will eventually converge: rising crypto adoption fuels higher prices, which in turn boosts mining profitability.
“In the long run,” he says, “Bitcoin is digital gold — scarce and valuable. Ethereum is the Android of crypto — an open platform for innovation.”
As institutions embrace crypto and macroeconomic forces shape the space, mining evolves from fringe hobby to global infrastructure.
Frequently Asked Questions
Q: Is Bitcoin mining still profitable in 2025?
A: Yes — despite higher hardware costs and network difficulty, Bitcoin’s price increase has shortened payback periods. Efficient miners in low-electricity-cost regions can break even in under 8 months.
Q: Why are GPUs so hard to find?
A: High demand from Ethereum miners has strained supply. Gamers compete with industrial-scale mining farms purchasing thousands of units — sometimes even harvesting GPUs from laptops.
Q: Can I mine Bitcoin with a regular computer?
A: No. Modern Bitcoin mining requires specialized ASIC hardware. Consumer CPUs and GPUs are no longer viable due to low efficiency.
Q: What happens when all Bitcoins are mined?
A: Mining will continue via transaction fees. After the final coin is mined (around 2140), miners will earn rewards solely from fees paid by users for transaction processing.
Q: How do mining pools distribute rewards?
A: Based on each miner’s contributed hashpower using models like PPS (fixed payout per share) or PPLNS (payout based on recent performance).
Q: Will DeFi replace traditional crypto mining?
A: Unlikely. While DeFi attracts capital with passive yield, traditional mining secures blockchains and remains essential for network integrity.
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