How to get started with Bitcoin mining? Will individuals still be able to mine for free in 2026?

If you want to own Bitcoin, the most direct methods besides purchasing are mining. But in 2026, will individuals still be able to mine for free like in the early days? The answer involves technological evolution, cost structures, and market conditions, which are worth exploring in depth. This article will systematically analyze the full landscape of Bitcoin mining to help you determine the rational approach to mining.

From CPU to ASIC: How Has Bitcoin Mining Evolved?

To understand why mining is so difficult today, we need to look at the history of mining tools.

Between 2009 and 2012, ordinary CPUs could be used for mining because the total network hash rate was low, making it very accessible for individuals. By 2013, GPU and graphics card mining became popular, raising the hardware threshold. In the same year, the second quarter saw the emergence of specialized ASIC miners (Application-Specific Integrated Circuits), which truly changed the game.

Since the advent of ASIC miners, professional devices like Bitmain’s Antminer, Avalon, and others have gradually dominated the market. These devices have hash rates far exceeding those of regular computers, but their prices have skyrocketed from a few hundred dollars to thousands or even tens of thousands of dollars. Over time, mining hardware has evolved rapidly, with older models quickly becoming obsolete, leading to increasingly fierce competition.

The Essence of Mining: An Explanation of the Proof-of-Work Mechanism

At its core, Bitcoin mining is based on a system called “Proof-of-Work” (PoW). Simply put, miners are workers using mining hardware to keep accounts and verify transactions on the Bitcoin network.

The process is as follows: transactions on the Bitcoin network are bundled into data blocks. Miners perform a special calculation to find a hash value that meets certain criteria. When a miner successfully finds such a hash, the new block is broadcast to the network, and other nodes verify it. Once most nodes agree that the block is valid, it is added to the blockchain, and the miner receives a reward.

In other words, mining is like solving an extremely difficult puzzle, requiring continuous trial and error to find the correct answer. The difficulty is determined by the total hash rate of the network. Currently, the total network hash rate exceeds 580 EH/s, making it virtually impossible for an individual to mine successfully with a single ordinary device.

How Can Individuals Participate in Mining? Practical Path Analysis

If you’re interested in mining, there are mainly two ways to participate: buy mining hardware yourself or rent hash power. Regardless of the choice, preparation is essential.

Step 1: Confirm the legality of mining in your location

Mining is an energy-intensive industry, and some countries and regions have clear policy restrictions. Before starting any mining operation, check local regulations.

Step 2: Decide whether to buy hardware or rent hash power

If you have strong technical skills, you can purchase mining equipment and operate it yourself. Be aware that mining hardware produces noise and may impact the environment. If you lack technical experience, you can entrust the hardware to a third party or rent hash power from platforms (which often include hosting services).

Current mainstream mining hardware includes:

• Antminer S19 Pro: High hash rate, low power consumption, but expensive and noisy; suitable for professional miners
• WhatsMiner M30S++: High hash rate, low power, no external cooling needed; ideal for efficiency-focused miners
• AvalonMiner 1246: Good value, suitable for beginner to intermediate miners
• Bitmain Antminer S9: Low cost, widely used, but average hash rate and efficiency; suitable for budget-conscious beginners

If you prefer not to buy hardware, renting hash power is another option. Platforms like NiceHash, Genesis Mining, HashFlare, and Bitdeer offer hash rental services, with prices ranging from dozens to thousands of dollars, suitable for different scales of participation.

Step 3: Choose a mining pool for collective mining

As the total network hash rate increases, solo mining becomes impractical. The mainstream approach is to join a mining pool, combining your hash power with others and sharing rewards proportionally. Well-known pools include F2Pool, Poolin, BTC.com, and AntPool.

Step 4: Start mining officially

After selecting hardware and a mining pool, configure and tune the software accordingly. When the pool finds a block, you receive a proportionate share of BTC rewards based on your hash contribution. You can choose to hold or sell the mined Bitcoin.

Why Is Mining So Attractive? Cost and Revenue Analysis

Sources of mining income

Miners earn primarily from two sources: block rewards and transaction fees. The block reward is predetermined and halved approximately every four years (initially 50 BTC, then 25, 12.5, 6.25, 3.125 BTC, etc.). Transaction fees depend on network congestion; during busy periods, fees are higher.

Cost components of mining

To assess profitability, you need to understand costs:

• Hardware costs: purchase price of mining equipment
• Electricity costs: the largest operational expense, critical to mining feasibility
• Cooling systems: for heat dissipation, including air conditioning, fans, or liquid cooling
• Maintenance and operation: routine upkeep, network maintenance
• Pool fees: most pools charge a commission

Simplified formula: Mining cost = hardware expenses + electricity + other operational costs

Recent data suggests that the total cost to mine one Bitcoin exceeds $100,000, depending on electricity rates, hardware efficiency, and equipment age.

Challenges for individual miners

Even with pool participation, individual hash power remains tiny relative to the entire network. Usually, the income from solo mining cannot cover electricity, hardware depreciation, and other costs, leading to losses. This is especially true for older mining rigs, which can be unprofitable.

How to Respond Post-Halving in 2024?

In April 2024, Bitcoin underwent its fourth halving, reducing the block reward from 6.25 BTC to 3.125 BTC. This has a significant impact on the mining industry:

Direct effects of halving

The halving halves the block reward, which, if Bitcoin prices do not rise accordingly, compresses miners’ profit margins. Many small miners using older equipment or with high electricity costs are forced offline, causing a short-term drop in total network hash rate. However, more efficient new miners and large-scale mining farms tend to fill this gap.

Meanwhile, transaction fees have become more important. During the 2023 bull market, fee income once accounted for over 50% of miners’ total revenue, and this proportion may increase after halving.

Miner strategies post-halving

To remain profitable after halving, miners typically:

1. Reduce costs: upgrade to more efficient hardware, relocate to regions with cheaper electricity, or utilize renewable energy sources; some mining farms experiment with “waste energy mining” and other innovative models.

2. Diversify income: some pools support algorithm switching, mining multiple coins, or hedge through futures contracts to lock in Bitcoin prices and hedge risks.

Industry outlook after halving

Small independent miners face further pressure, while large farms leverage economies of scale and cheap electricity to dominate. Innovative mining models, such as hybrid farms combining AI and leasing computing power, are emerging to improve profitability. The industry is becoming more centralized and specialized.

Bitcoin Mining vs. Online Trading: How to Choose?

If your goal is to acquire Bitcoin, besides mining, other options are worth considering.

Features of mining

Self-mining requires significant upfront investment (mining rigs often cost over $1,000–$2,000), ongoing electricity costs, and exposure to hardware obsolescence. The profit cycle is long, and technical knowledge is needed.

Advantages of online trading

In contrast, online trading platforms offer a low-asset participation method. You don’t need to buy hardware; just open an account on a platform and trade, similar to stock trading. You can trade spot or derivatives, including contracts that support both rising and falling markets, providing opportunities regardless of market direction. Bitcoin trading also offers privacy and does not require third-party intermediaries like banks.

For most users, buying or trading Bitcoin on legitimate platforms involves lower risk, simpler operation, and smaller capital requirements than mining.

Conclusion

Bitcoin mining is fundamentally a process where miners use hardware to verify transactions and maintain the blockchain, earning BTC rewards in return. This incentive mechanism has attracted massive investment, transforming mining from a hobby into a professional, industrial sector mainly dominated by large capital.

Over this development, individual mining has become less feasible. Using CPUs or GPUs for solo mining is generally unprofitable. Participating in mining requires facing high hardware costs, ongoing electricity expenses, and rapid technological competition. Joining a mining pool can reduce risks but still demands significant capital and technical expertise.

Before deciding to mine, conduct a comprehensive assessment: check local policies, calculate actual costs and potential profits, and verify hardware reliability. For most ordinary users, participating in the Bitcoin market through legitimate trading platforms may be a more practical and efficient choice.