Hash rate and network difficulty

Hash rate and network difficulty are two key factors that directly influence mining profitability. The higher a miner's hash rate, the more blocks they can process, increasing their rewards. However, as the overall network hash rate increases, difficulty also rises, leading to reduced rewards if the miner's personal hash rate does not grow at the same pace.

In 2024, the network hash rate increased from 132.19 PH/s to 1.486 EH/s, representing a growth of 1024%. This significantly reduces the profitability for miners whose hash rate does not keep up with the overall network growth. Therefore, adjusting the hash rate in accordance with the increase in difficulty is critically important for maintaining profitability.

Equipment performance

Mining efficiency directly depends on equipment performance. With advancements in technology, new, more energy-efficient models have been released that provide greater performance with lower energy consumption. For example, the Antminer KS5 consumes only 150 W/T, while new ICERIVER models can consume between 200 W/T and 300 W/T, which reduces profit margins.

To increase profitability in 2025, miners need to invest in high-performance and cost-effective miners to effectively compete amid the growing network hash rate.

Electricity costs

Energy costs are the main expense for most miners. The cost of electricity directly affects profitability, and reducing energy consumption or finding cheaper energy sources can significantly boost income. For example, for the Antminer KS5, at a rate of $0.05 per kWh, electricity costs account for 40.5% of total expenses. However, lowering the rate to $0.04 per kWh reduces this figure to 32.5%, which increases profit. Miners should look for locations with favorable tariff policies and use energy-efficient devices to reduce electricity costs.

Block rewards and fees

A unique monthly halving mechanism, where the reward decreases by 1/2^(1/12) each month. Unlike other cryptocurrencies, the high frequency of halving has a more pronounced effect on miners' income. Early miners receive larger rewards, so those who start mining earlier will receive more block rewards. Additionally, network activity, such as the growth of the KRC20 ecosystem in 2024, can increase miners' income through a rise in the number of transactions and fees.

Choosing a mining pool

The stability of the mining pool is crucial for miners' profitability. Pools with high hash rates, such as #miningpool ViaBTC, provide more stable rewards. Miners are advised to choose pools that support PPS+, which ensures more predictable income and reduces dependence on randomness. It is also important to select a pool that aligns with the miner's risk and return preferences to ensure regular payouts and minimize income fluctuations. Optimization of miners' income in 2025.

To maintain stable income in 2025, miners need to implement a series of optimization strategies:

  • Invest in high-efficiency miners: which allow for increased profit per unit of power consumed, contributing to overall revenue growth.

  • Choose a reliable mining pool: selecting a pool with an appropriate income distribution scheme and high stability is critically important for ensuring steady payouts.

  • Optimize electricity and operating cost expenses: using cheaper electricity and adjusting equipment performance can help reduce operating costs and improve profitability.

  • Monitor market trends: regular monitoring of prices and market conditions will enable timely adjustments to mining strategies and minimize losses related to market volatility.

In 2025, miners will face a more challenging competitive environment. Factors such as hash rate, network difficulty, equipment performance, electricity costs, block rewards, pool choice, and market price fluctuations will directly impact income. To remain competitive and profitable, miners need to flexibly adapt strategies, optimize expenses, and account for changes in both the network and the market.