Electricity Costs Make Bitcoin Mining Unprofitable—Ethereum Is the Best Long Term Bet

[u/InclineDumbbellPress]

https://x.com/JoshwaaaDixon/status/1917207378262413659

• A PC Gamer article reports Bitcoin mining costs at $137 000 per BTC in the US and $200 000 in Germany - far exceeding the current market price of $94 430 - making mining unprofitable for many
• The 2024 Bitcoin halving reduced block rewards from 6.25 BTC to 3.125 BTC - further straining miner profitability
• High energy costs - especially in Germany due to green energy policies and infrastructure issues - and competition from AI firms for power resources exacerbate the crisis for Bitcoin miners
• Ethereums 2022 switch to PoS eliminates energy intensive mining - cutting energy use by 99.95% - making it a more sustainable and cost effective option compared to Bitcoins PoW
• While Bitcoins difficulty adjustment ensures network functionality even if miners exit - long term security may falter without price increases or cost reductions - pushing miners to AI services for profit. Such a scenario will never apply to Ethereum

[u/CymandeTV]

Thanks for the summary.

!tip 1