In 2024, crypto mining, especially for Bitcoin, has become more challenging and less profitable for new entrants due to several factors, particularly the recent Bitcoin halving in April 2024.
The halving event, which slashed Bitcoin mining rewards from 6.25 to 3.125 BTC per block, has had a direct and significant impact on miners’ revenue, effectively cutting it in half.
While this can eventually drive up Bitcoin’s price (due to decreased supply), the immediate impact on profitability has been significant, especially for miners with higher electricity and operational costs.
With increased competition and lower rewards, solo miners and small-scale operations will likely need access to cheap or renewable energy and the latest ASIC mining hardware.
The industry has consolidated over recent years, with extensive mining farms dominating due to economies of scale and better efficiency.
Unless Bitcoin’s price rises significantly, many small miners may find it tough to break even, especially in regions with high electricity costs.
For those still interested in mining, options beyond Bitcoin might be more accessible, such as mining altcoins or participating in staking or liquidity-providing mechanisms on other blockchains.
These alternatives require lower upfront investments than Bitcoin mining, though they have different risks and lower potential returns.
Let us know if you decide to go for it. It’s an interesting hussle.
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