The world of cryptocurrency mining is experiencing a seismic shift — driven by surging digital asset prices, soaring demand for hardware, and unprecedented supply chain strain. From sold-out ASIC rigs to graphics cards being ripped out of laptops, the current mining boom echoes the gold rushes of old, where fortune-seekers race to stake their claim before the window closes.
This modern-day gold rush isn't powered by pickaxes, but by semiconductors and kilowatts. Miners are scrambling to secure equipment, power, and space in an environment where scarcity fuels both opportunity and anxiety.
The Surge in Bitcoin Mining Demand
For miners like Li Wen, the decision to enter the space has paid off handsomely. In June 2020, he invested 70,000 yuan ($10,800) in 10 used WhatsMiner M20S units. Each machine delivered 65 terahashes per second (TH/s) of computing power, collectively generating roughly one bitcoin annually. At today’s valuations, that output exceeds $300,000.
But the real windfall wasn’t just in mined coins — it was in the resale value of the machines themselves. “I made money on both ends,” Li Wen said proudly. “The price of Bitcoin went up, and so did the value of my miners.”
His story isn’t unique. Early adopters who bought mining hardware during bear markets now find themselves sitting on appreciating assets. One miner, Peter (a pseudonym), purchased 200 WhatsMiner M20S units in 2019 for about 2 million yuan. Over time, those machines produced over 50 bitcoins — now worth more than 16 million yuan — with net profits exceeding 10 million after electricity costs.
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Mining Equipment in Short Supply
Today’s mining landscape is defined by scarcity. Eight months ago, Beijing still had physical stores selling new and used mining rigs. Now, most have shuttered due to lack of inventory.
“People are booking directly with manufacturers now — often in bulk,” Li Wen explained. “Even pre-orders get snapped up before the machines leave the factory.”
Major suppliers like Bitmain (maker of Antminer) and Canaan Creative (maker of AvalonMiner) show all Bitcoin mining rigs as out of stock, with delivery estimates pushed into late 2025. Futures orders are backed up through Q3 2025.
On secondary markets, prices have skyrocketed. The Antminer S19 Pro (95 TH/s), listed at around 20,000 yuan on Bitmain’s site, sells for over 50,000 yuan retail — more than double its original price. In early 2020, the same model’s futures traded at just 13,000 yuan.
Mine operators report explosive growth in order sizes. Where group buys once ranged from 50 to 200 units, deals now start at 1,000 machines — with one client ordering 5,000 units outright.
Despite the trauma of the March 2023 crash — when Bitcoin plunged over 25% in a day and global hash rate dropped 27% — the industry has rebounded fiercely. Machines once considered obsolete now sell for 20,000 yuan each.
“Compared to last year,” Li Wen noted, “miner prices have doubled or tripled — but Bitcoin’s price has increased over 4.5 times. That means faster payback periods. What used to take a year now takes less than eight months.”
Ethereum Mining Fuels GPU Shortage
While Bitcoin miners rely on specialized ASICs, Ethereum mining runs on GPUs — making consumer-grade graphics cards the weapon of choice for altcoin prospectors.
Peter is diversifying his operations: “I’ve committed 5 million yuan to buy over 1,300 GPUs. These will be assembled into custom mining rigs.”
High-end cards from NVIDIA and AMD — such as the RTX 30 series and RX 6000 series — are in extreme demand. Gamers and creators face shortages and inflated prices, largely due to miners snapping up inventory.
In response, NVIDIA announced it would reduce the Ethereum hash rate on its GeForce RTX 3060 GPU and launch a dedicated mining product line: NVIDIA CMP (Cryptocurrency Mining Processor). These chips lack display outputs and are optimized purely for mining efficiency.
Yet supply constraints persist. Some Ethereum mining farms have resorted to drastic measures.
“I spoke with a factory that bought over 10,000 gaming laptops just to extract the GPUs,” said Shang Silin, President of Mars Pool. “For them, the value of the graphics card exceeds the cost of the entire laptop.”
This reflects a broader truth: GPU mining profitability has outpaced traditional use cases, turning everyday devices into components of industrial-scale crypto farms.
Understanding Cryptocurrency Mining: A Game of Hash Power
To outsiders, terms like blockchain, mining, and hash rate may sound abstract. But at its core, mining is about solving complex mathematical puzzles to validate transactions and earn rewards.
Bitcoin uses a decentralized ledger called blockchain — a public record of all transactions. Every ~10 minutes, a new block is added to this chain. Miners compete to solve a cryptographic challenge (using SHA-256 algorithm) to earn the right to add that block — and receive newly minted bitcoins as a reward.
However, solving these puzzles requires immense computational power. A single machine might take centuries to succeed alone.
That’s where mining pools come in.
Pools combine the hash power of thousands of machines worldwide, increasing their collective chance of solving blocks. Rewards are distributed proportionally based on each miner’s contributed computing power, using models like PPLNS or PPS.
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Rising Hash Rates and Centralization Risks
Global hash rates are climbing rapidly:
- Bitcoin: Increased from 112.93 EH/s in early 2024 to 153.48 EH/s by year-end — a rise of ~36%.
- Ethereum: Jumped from 141.55 TH/s to 281.37 TH/s — nearly 99% growth, more than double Bitcoin’s pace.
Ethereum’s faster growth stems from lower entry barriers. Unlike Bitcoin ASICs, Ethereum mining uses widely available GPUs and resists specialized hardware (ASIC-resistant design), allowing broader participation.
But centralization remains a concern:
- Top four Bitcoin pools (F2Pool, Poolin, BTC.com, AntPool) control 55.6% of total hash power.
- Three Ethereum pools (SparkPool, Ethermine, F2Pool) command 75.5% collectively.
Such concentration raises questions about network decentralization — one of crypto’s foundational ideals.
Miners vs. Traders: Patience Over Speculation
There’s a cultural divide between miners and traders.
“Miners are believers,” said Wang Feng, founder of Mars Finance and Mars Pool. “They see mining as dollar-cost averaging — steady accumulation over time.”
Unlike traders chasing price swings with leverage and futures, miners earn consistent daily rewards. Their mindset is long-term: “I don’t touch leverage,” Peter said. “Mining keeps me grounded.”
Data from Mars Pool shows over 90% repurchase rate among existing clients — some upgrading multiple times within months.
Mining offers predictable economics: A typical ASIC lasts about four years. Profitability depends on electricity cost, hash rate, and Bitcoin price. As long as revenue exceeds operating costs, miners stay online.
“It’s like buying Bitcoin at a 30–40% discount,” Shang Silin likened it, “but the coins arrive gradually.”
Still, risks exist. If prices drop below the shutdown price — where mining revenue can’t cover electricity — unprofitable rigs go dark.
Li Wen narrowly avoided disaster in 2017 when he backed out of a large Antminer purchase due to high financial risk. Friends who bought on credit or sold homes suffered massive losses when Bitcoin crashed in 2018.
Yet those who held through the bear market saw their assets multiply tenfold — even 18x from lows to highs.
“Faith matters,” Li Wen reflected. “True miners believe in the technology, not just the price.”
DeFi’s Rise and Its Impact on Traditional Mining
Decentralized Finance (DeFi) has introduced a new form of "mining": liquidity mining.
Instead of using hardware to validate blocks, users deposit crypto assets into protocols like Uniswap or Aave to earn yield. As of early 2025, DeFi protocols hold over $55 billion in locked value — quadrupling since late 2024.
Wang Feng acknowledges DeFi’s appeal: lower barrier to entry, higher short-term yields, and growing institutional interest.
“For non-technical users,” he said, “DeFi feels more accessible than setting up a mining rig.”
Some miners are reallocating capital into DeFi farms for better returns. However, DeFi comes with risks: smart contract vulnerabilities, impermanent loss, and regulatory uncertainty.
In the long run, Wang believes DeFi and traditional mining will coexist — even converge.
“DeFi increases adoption of crypto assets,” he said. “Higher demand drives up prices — which then pulls more people back into mining.”
He compares Bitcoin to digital gold — store of value — while Ethereum is like Android for decentralized apps.
As corporations and governments increasingly recognize crypto’s role in global finance, mining is no longer a fringe hobby — it's part of the macroeconomic fabric.
Frequently Asked Questions
Q: What is cryptocurrency mining?
A: It’s the process of using computing power to solve cryptographic puzzles and validate transactions on a blockchain network. Successful miners earn newly minted coins as rewards.
Q: Is GPU mining still profitable in 2025?
A: For Ethereum-based networks still using Proof-of-Work (if applicable), yes — especially with low electricity costs and bulk hardware access. However, profitability fluctuates with coin prices and network difficulty.
Q: Why are mining rigs so hard to find?
A: High demand from institutional and retail miners has outstripped supply. Manufacturers face chip shortages and long lead times, causing widespread delays and secondary market markups.
Q: Can I mine Bitcoin with a regular computer?
A: No. Modern Bitcoin mining requires specialized ASIC hardware due to extreme competition and network difficulty.
Q: How does a mining pool work?
A: A mining pool combines hash power from many participants to increase chances of solving blocks. Rewards are shared based on each member’s contributed computational effort.
Q: Will DeFi replace traditional mining?
A: Not entirely. While DeFi offers alternative earning methods, traditional mining secures blockchain networks and remains essential for decentralized consensus.
The crypto mining boom is reshaping hardware markets, energy usage patterns, and investment strategies worldwide. As technology evolves and adoption grows, those who understand the fundamentals — from hash rate to long-term holding — stand to benefit most in this high-stakes digital frontier.
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