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Crypto mining can still be profitable, but it’s potentially not as profitable for some as it was in years past. That’s true for a number of reasons. Cryptocurrencies by and large still have value, but calculating the potential for miner profitability can be a bit trickier than before, given the expense of computer hardware and software needed today, as well as the rising cost of energy it takes to keep that mining equipment running. Crypto miners must simultaneously contend with increased competition, along with potentially diminishing rewards.

That said, knowing the factors and expenses involved can help you determine if crypto mining may be a good option for you. Before deciding whether mining Bitcoin, Litecoin, Ethereum Classic, or other cryptocurrencies is worth it, it’s important to know how it works, and what the pros and cons are.

The State of Crypto Mining in 2025

Crypto mining is, as of 2025, still very much an active part of the overall crypto ecosystem. But given how popular cryptocurrency and blockchain technology has become in recent years, it’s more competitive than ever, and the rewards for mining certain cryptocurrencies have dwindled.

What Is Crypto Mining?

Crypto mining is the system used by some blockchain networks to validate and secure transactions or data, while simultaneously producing rewards and new cryptocurrencies for miners, or participants on the network. As such, it simultaneously validates the network and expands it.

Crypto mining isn’t just the creation of new cryptocurrencies, like Bitcoin (BTC), which is the first, largest, and most well-known cryptocurrency that utilizes a proof-of-work validation system. It’s also a decentralized global system by which miners validate and secure cryptocurrency transactions, and earn coins themselves. But note that there are many others, such as Litecoin, Ethereum Classic, Dogecoin, and more.

It goes back to the blockchain technology that cryptocurrencies are built on. To run these networks, miners rely on powerful computer systems, or in some cases cloud-based technology, to solve complex mathematical puzzles and validate blocks of digital transactions.

This system is known as proof-of-work (PoW). Under PoW systems, every transaction gets recorded in a transparent, immutable, public ledger known as the blockchain. The miners who solved it get rewarded with new coins being mined.

Overall, mining serves the purpose of validating a crypto network, and generating rewards for network participants, sometimes called validators or miners.

How Major Events Have Reshaped the Industry

Regulatory changes, and potential technology changes, have spurred the industry to some extent. While there are still a lot of things up in the air, legislative changes in 2025 appear to be more crypto-friendly than in previous years.

At the same time, rewards for some cryptos, particularly Bitcoin, have diminished. That’s largely due to a phenomenon introduced with Bitcoin known as the “halving,” which cuts the number of coins rewarded for mining a new block by half.

Bitcoin mining is intensely competitive, especially because the reward is halved every 210,000 blocks and now stands at 3.125 BTC, down from 6.25 BTC. At Bitcoin’s first halving event in 2012, its reward was reduced from 50 to 25 BTC. As more Bitcoins are mined and the supply of new Bitcoins drops, the amount of Bitcoins released with every new block diminishes over time. The supply will purportedly be exhausted by around 2140^[1].

While Bitcoin’s halving event is likely the most significant in the crypto sector, given its relative (though volatile) value and reach, a few other cryptocurrencies use halving as well. Litecoin rewards are currently 6.25 coins per block, having last been reduced in August 2023. Litecoin gets halved every 840,000 blocks and is scheduled to produce 84 million coins, compared to Bitcoin’s 21 million.^[2]

Ethereum Classic, established as the original Ethereum blockchain code following a 2016 fork that split the blockchain into Ethereum (ETH) and Ethereum Classic (ETC), uses an event called the “fifthening,” which lowers the block rewards by one-fifth, or 20%, every five million blocks.^[3]

What Real Miners Are Saying

In a general sense, overall sentiment around the crypto industry is that it may still worth it to mine crypto, assuming you have the correct equipment, know what you’re getting into, and have access to relatively inexpensive electricity.

Again, it’s more competitive, and rewards are diminishing, so it’s not quite as simple, easy, or necessarily as profitable as it once was.

Is Crypto Mining Profitable?

As noted, crypto mining can still be profitable. But it isn’t for everyone. There are a lot of things to take into consideration.

The Unavoidable Costs

If you plan to try crypto mining on your own, here are some things to consider:

•   Equipment cost

•   Electricity cost

•   The time it will take to recoup equipment costs

•   How BTC price fluctuations (or that of other crypto) might impact profitability

•   The frequency with which you will need to buy newer, more powerful machines and sell old ones

There may be additional things to consider, too, but this is an initial list to consider.

How to Calculate Your Potential ROI

To determine your potential returns from crypto mining, you’ll need to first assess how much income you may be able to generate from mining a specific cryptocurrency.

The rewards you could potentially earn from mining different cryptocurrencies can vary dramatically. Bitcoin miners that successfully validate a new block on Bitcoin’s blockchain will earn 3.125 BTC, currently. As mentioned above, that reward will be reduced during the next halving, and be aware that it is very unlikely for an individual to mine a single Bitcoin on their own, given the vast computational power required.

Rewards for other proof-of-work cryptocurrencies may also change over time, as with Litecoin and Ethereum Classic. Similar to Bitcoin mining, altcoin miners may be most successful when working in teams or mining pools — groups that combine their computer power to mine collaboratively — though keep in mind that rewards are split up between parties.

For every PoW cryptocurrency you may be interested in mining, you’ll also need to know how much you’ll spend on mining equipment, and how much you’re paying for electricity to get a sense of a potential return on your money. That will vary depending on many factors. But with those figures in-hand, you can make an educated guess as to how much crypto rewards you could actually mine for a given cryptocurrency, and then calculate a potential return.

Best Cryptocurrencies to Mine in 2025

For those who choose to undertake the potentially costly task of mining crypto, the best cryptocurrency to mine might be the one with the lowest difficulty and highest price. But it’s critical to remember that these dynamics are in a constant state of flux, so the best cryptocurrency to mine today might not be the best one to mine tomorrow.

Mining Bitcoin: A Game for Giants

While Bitcoin mining may seem lucrative given its popularity and relative value to other cryptocurrencies, there are some caveats. For instance, to mine crypto effectively and efficiently, specialized machines built and tuned specifically to mine cryptocurrencies are often required. It also requires space, and a great deal of energy, to house and cool these powerful machines that operate around the clock.

There’s also competition to consider: The mining market is dominated by large companies who secure large warehouse facilities to house their army of mining rigs. Some of these companies might run mining pools that smaller miners can contribute to in order to get a piece of some block rewards in exchange for a small fee.

This is all to say that, today, mining Bitcoin, as an individual, is rarely profitable unless someone has access to extra low-cost electricity and affordable equipment. Industrial crypto mining exists, and it’s hard to compete with their large-scale mining operations.

Top Altcoins for GPU Mining

As noted, aside from Bitcoin, there are numerous altcoins and other cryptocurrencies that can potentially be mined. GPU mining, which stands for “graphics processing units,” involves using GPUs, rather than CPUs, to process mining calculations, and they’re generally more efficient at it.

With that in mind, there are many altcoins that users can consider mining with their GPU-equipped mining rigs:

Ethereum Classic (ETC): Unlike Ethereum, which moved to a proof-of-stake consensus mechanism, Ethereum Classic still uses proof-of-work, and may be mined using GPU or ASICs hardware.

Litecoin (LTC): Initially launched in 2011 as a decentralized global payment network and “a lite version of Bitcoin,” it was designed to be faster as well as more lightweight, but its adoption has been slower than Bitcoins’. Litecoin may be mined using high-end GPUs as well as ASICs, though working in a pool may be most viable.

Dogecoin (DOGE): While mining of the popular memecoin may be most effective using an ASICs system, it’s still possible to mine Dogecoin using a powerful GPU system.

Ravencoin (RVN): Ravencoin, a fork of the Bitcoin code used to issue and exchange tokens, is actually designed so that mining is most efficient on consumer GPU systems — and resistant to ASICs systems — thanks to an algorithm it uses called KAWPOW.

In addition to GPU options, there are also still CPU-mineable coins on the market, too, which means they can be mined using a CPU, rather than a GPU or a more advanced rig. Some coins are designed primarily for CPU mining, though these are less common. GPUs generally have more processing power than CPUs, which is why more miners may want to use GPU-equipped rigs to mine. And many cryptos can be mined with either.

Risks and Alternatives for the Crypto Miner

While there are risks associated with mining, an alternative for some people may be to join a crypto mining pool. These also have costs and risks, but may be a less-risky option for some.

As for a primer: Due to the high cost and rising difficulty of mining crypto, most miners today use something called a mining pool, as mentioned previously. Participating in mining pools is considered by many to be the only way for individual miners to make any profit today, and even then it can be difficult to recoup the costs of equipment and electricity.

Within a mining pool, individual miners pool their resources together with other miners, improving their chances of mining a block and earning the rewards. When a block gets mined, the rewards are then split up among the different miners in proportion to the amount of computing power (known as hashing power) they contributed.

Mining pool owners typically charge mining fees for maintaining and participating in the pool. There are several different pools to choose from, each with their own structure.

Further, there are also cloud mining opportunities out there, which effectively allow miners to use computing resources over the internet. Miners using this strategy are renting others’ equipment, which incurs more costs. However, it’s important to vet a cloud mining platform to ensure they’re legitimate and well-reputed, as scams in this sector are an unfortunate reality.

The Major Risks Beyond Profitability

While crypto mining can be profitable in some instances, it does have its risks and downsides. Here’s a brief rundown.

•   Environmental Risks: As mentioned, crypto mining is resource-intensive. Running mining rigs eats up a lot of electricity, which, in turn, generates environmental pollution.

•   Security Risks: Malware and other security risks exist in the mining sphere, too. For instance, it’s possible that bad actors could use techniques (like phishing) to access someone’s computer, and then load mining codes and programs onto it without them knowing. As such, the victim could be sharing their computing resources and electricity mining with a hacker without even realizing it.

•   Regulatory Risks: There are new regulations affecting the crypto space (such as the Genius Act and rules around the national Bitcoin Reserve). There are likely to be more in the future. The point is that the rules and regulations surrounding crypto are in flux, and those new rules and regulations will likely affect miners.

•   Financial Risk: Crypto mining requires upfront costs, which can be substantial. You’ll need to buy a “rig,” first and foremost, and stocking up on the necessary computer power can be expensive. As with any financial plan, there are no guarantees the money you put in will pay off. Mining may not be as profitable in the future, meaning you may not see the types of returns you were hoping for longer-term.

Is Mining a Better Option Than Buying Crypto?

Whether or not mining or buying crypto is a better financial option depends on a number of factors, such as your resources, technical skills, tolerance for risk, and timeframe.

To a large extent, it comes down to how much you plan to spend on mining equipment. And it’s important to remember that the hardware needs of crypto mining is constantly evolving as older machines become obsolete, meaning that you need more processing power over time to produce the same potential results. When this happens, miners must acquire new, more advanced hardware.

In that sense, it may make sense for those without the capital and time to devote to mining to simply buy crypto directly. Keep in mind that another alternative individuals could consider is staking vs. mining crypto in order to pursue rewards.

The Takeaway

Crypto mining is still profitable in 2025 however, it may not be as profitable as it once was, and that mining operations have become more expensive to run and maintain. That’s not to say that prospective miners won’t make a profit, but there are more things to consider than in years past.

With that in mind, mining is a complex operation that carries considerable costs and risks.

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FAQ

Can I make a profit mining with just one GPU?

Possibly, but you should take into account the fact that you may spend more on a mining rig than you could see as a result of your mining efforts.

How long would it take to mine 1 Bitcoin?

There’s no single, correct answer as to how long it takes to mine a single Bitcoin in 2025. It all depends on the amount of hashing power a miner contributes, and a bit of luck. Bitcoin’s blockchain does produce one Bitcoin around every ten minutes, but for an individual miner, there’s no telling when they could receive the reward (since not all miners are rewarded when a block is validated).

How do I find out my exact electricity cost for mining?

To figure out how much you’re spending on electricity for crypto mining, you’ll need to know how much you’re paying for electricity in your specific area, and how much electricity you’re consuming specifically for mining. From there, you can calculate your exact costs, but it could still prove to be tricky.

Is cloud mining a legitimate alternative?

Cloud mining is a viable alternative to putting your money into a crypto mining rig, but know that any potential rewards will likewise be diluted. However, cloud mining scams are not uncommon, unfortunately. It’s important to thoroughly vet any service you’re considering.

Will my mining hardware become worthless in a year?

It’s possible that your mining hardware will lose value over the course of a year, and perhaps even likely.

About the author

Brian Nibley

Brian Nibley is a freelance writer, author, and investor who has been covering the cryptocurrency space since 2017. His work has appeared in publications such as MSN Money, Blockworks, Business Insider, Cointelegraph, Finance Magnates, and Newsweek. Read full bio.

Photo credit: iStock/South_agency

SOCRYP-Q325-049

The Federal Reserve has two primary long-range goals: maximum employment and stable prices. These two aims can be at odds, which is why the Fed is often called hawkish or dovish.

The Fed’s posture — meaning the stance of its monetary policy — indicates whether it is focused on controlling inflation (hawkish) or maximizing employment (dovish). The posture of the Fed is important for setting expectations and determining economic outcomes. That’s critical for investors to understand.

Who Decides Monetary Policy?

The Federal Reserve, the central bank of the United States, decides monetary policy. And, as mentioned, it can take different postures in achieving its goals. In fact, the Fed is striving to balance what can seem like opposing scenarios. For example:

•   A monetary hawk is someone for whom keeping inflation low is the top concern. So if the Federal Reserve seems to be embracing a hawkish monetary policy, it might be because it’s considering raising interest rates to control pricing and fight inflation.

•   A dove is someone who prioritizes other issues, such as economic growth and low unemployment over low inflation. If the Fed seems to tilt toward a dovish monetary policy, it could signify that it plans to keep rates where they are — at least for the time being — because growth and employment are essentially doing fine. Or it may plan to lower rates to stimulate the economy and add jobs.

It’s important to note that the Federal Reserve’s decisions on monetary policy aren’t left to just one person.

People often blame the chairman of the Federal Reserve if they don’t like the way interest rates are going — whether that’s up or down. But the Fed’s direction is determined by a group of central bankers, not by the Fed chair alone.

The 12 members of the Federal Open Market Committee (FOMC), who typically meet eight times a year to review economic conditions and vote on the federal funds rate, are responsible for deciding the country’s monetary policy. And they may have varying opinions about what the economy needs. So you might hear that the Fed is hawkish or dovish, or you may hear that an individual policymaker — or policy influencer — is a hawk while another is a dove.

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Why Would the Fed Take a Hawkish Stance?

When fiscal policy advisors in the government or banking industry are described as favoring a hawkish or “contractionary” monetary policy, it’s usually because they want to tighten the money supply to protect the economy from inflation and promote price stability.

If the price of goods and services rises due to inflation, consumers can lose their purchasing power. A moderate inflation rate is considered healthy for the economy. It encourages people to spend or invest their money today, rather than sock it away. The FOMC has determined that an inflation rate of around 2% is optimal for employment and price stability.

If inflation rises above that level for a prolonged period of time, the Fed may decide to pump the brakes to control inflation and keep the U.S. economy on track.

The Fed has several tools for controlling inflation, including raising its federal funds rate and discount rate, selling government bonds, and increasing the reserve requirements for banks. When access to money gets more expensive, consumers and businesses typically borrow less and save more, economic activity slows, and inflation stays at a more comfortable level.

Recommended: Is Inflation a Good or Bad Thing for Consumers?

Why Would the Fed Take a Dovish Stance?

A dovish or expansionary monetary policy is the opposite of hawkish monetary policy.

If the Fed is worried about the economy’s growth, it may decide to give it a boost by lowering interest rates, purchasing government securities by central banks, and lowering the reserve requirements for banks. Or, if it thinks employment and growth are on track, it might keep interest rates the same.

With lower interest rates, businesses can borrow more money to expand and potentially hire more workers or raise wages. And when consumers are in a low-interest rate environment created by a dovish monetary policy, they may be more likely to borrow money for big-ticket items like cars, homes, home improvements, and vacations. That increased consumption can also create more jobs. And doves tend to prefer low unemployment over low inflation.

Is It Possible to Be Both Hawkish and Dovish?

Yes. Some economists (and FOMC members) don’t take a completely hawkish or dovish attitude toward monetary policy. They are sometimes referred to as neutral or “centrists,” because they don’t appear to prioritize one economic goal over another. Fed Chair Jerome Powell, for example, has been called a hawk, a dove, a “cautious hawk,” a “cautious dove,” neutral, and centrist in various media reports.

And the media frequently pondered where Powell’s predecessor, U.S. Treasury Secretary Janet Yellen, stood on the hawk-dove continuum, though she was considered to be more of a dove.

The current (as of 2025) FOMC includes members who have been identified as hawkish, dovish, and neutral. That mix of viewpoints can make it difficult to guess the group’s next move — so anxious investors are keeping a close eye out for clues as to what could happen next.

How Do Hawkish vs Dovish Policies Affect Savers, Spenders, and Investors?

Interest rates frequently rise and fall as the economy cycles through periods of growth and stagnation, and those fluctuations impact everyone. Whether you’re a saver, spender, or investor — or, like most people, all three — you can expect those rate changes to eventually impact your bottom line.

For Savers

Savings account rates are loosely connected to the interest rates the Fed sets, so you might not see a difference right away if there’s a cut or a hike.

When the Fed lowers the federal funds rate, however, financial institutions may move to protect their profits by lowering the interest paid on high-yield savings accounts, money market accounts, and certificates of deposit (CDs). That can be frustrating, but saving is still important. In fact, financial professionals generally recommend having an emergency fund with at least three to six months’ worth of living expenses that’s easy to access.

For Spenders

An increase or decrease in the federal funds rate can indirectly affect the prime rate banks offer their most credit-worthy customers. And it is often used as a reference rate, or base rate, for other financial products, including car loans, mortgages, home equity lines of credit, personal loans, and credit cards.

If interest rates go down, and borrowing gets cheaper, it can encourage consumers to go out and make those purchases — both big and small — that they’ve been wanting to make.

If interest rates go up, on the other hand, consumers tend to be deterred from borrowing and spending. They might decide to wait for rates to drop before financing a house, a car, or an expensive purchase like an appliance or home renovation.

Impulse spending also can be affected. Spenders might choose to save their money instead — especially if the interest rate goes up. Or consumers may focus on paying down credit card debt and other loans to avoid paying high interest on big balances, especially if those obligations carry a variable interest rate.

For Investors

There are no guarantees as to how any investment will react to changes in interest rates made by the Fed. Some assets (like bonds) can be more directly impacted than others. But nearly every type of investment you might have could be affected.

One way to help reduce your risk exposure is to create a diversified portfolio, with a mix of assets — from stocks and bonds to cash, and so on — that won’t necessarily react in the same way to changes in the interest rate (or other economic factors).


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The Takeaway

The Federal Reserve has two primary goals: overseeing U.S. monetary policy in order to stabilize prices and control inflation — a posture that’s considered hawkish — and maximizing employment, which is considered dovish. It’s a never-ending process of posturing, with the goal of maintaining low unemployment and stable prices.

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FAQs

What is the difference between a hawkish and dovish Fed?

A hawkish Fed means that the Fed is tightening monetary policy to fight inflation and control prices, typically by raising interest rates. A dovish stance by the Fed focuses on stimulating economic growth and creating jobs, often by cutting interest rates and following a looser and more expansionary money policy.

What happens to inflation if the Fed cuts rates?

When the Fed cuts interest rates, consumers and businesses may spend and borrow more money. This can stimulate the economy, but it can also cause inflation to rise because it creates more demand for goods and services, which may lead to companies to raise prices.

What does it mean to be hawkish in the Fed rate?

Being hawkish with the Fed rate typically means raising the interest rate. A hawkish monetary policy tends to focus on hiking the interest rate to help fight inflation.

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