04 Apr 2025

light mode

What is the future of Bitcoin miners in 2023?

Bitcoin miners may face some challenges in the coming years, such as stiff competition, the low BTC price, and the bitcoin halving, which will cut the block reward in half. However, there are also some encouraging trends.

On this page

Miners used to earn about 22 cents per terahash per day before the cryptocurrency market crashed in May 2022, but this figure has now dropped to 7. This has resulted in a significant decrease in the price of equipment, making it very appealing to large capital investors.

The average price of an ASIC miner Source: Hashrateindex.com

The average price of an ASIC miner Source: Hashrateindex.com

In other words, it is designed so that large miners can keep expanding their computing power and lowering their average cost, while weaker miners are forced to leave the game because they are unable to compete with them. High loan interest rates, which arose as a result of the US Federal Reserve System's attempts to slow inflation, play a significant role in this. 

Miners' challenges

Each year, new players join the market who can afford to acquire more effective computing power, thus increasing the overall hashrate of the Bitcoin network. This is a problem for smaller miners whose equipment has not yet paid them back.

Bitcoin mining ASICs with hashrates of more than 100 TH/s went on sale in the summer of 2021, and even newer equipment that doubled this figure appeared in the first half of 2022. For certain modern models, bitcoin must be worth more than $15,000 for this business to be profitable.

Release date of new bitcoin mining ASICs and their power efficiency Source: Hashrateindex.com

Release date of new bitcoin mining ASICs and their power efficiency Source: Hashrateindex.com

However, it appears that equipment manufacturers have reached a certain limit in their use of modern technologies. The most recent Bitmain models have 5-nanometer chips, and if their size is reduced even further, their cost (as well as the number of defects) will skyrocket. In general, this is a problem for many electronics manufacturers, as improving chip energy efficiency becomes increasingly difficult. 

Bitmain specifications Source: MinerDaily

Bitmain specifications Source: MinerDaily

Thus, the bitcoin halving, which will take place in the spring of 2024, poses a more significant threat to miners. This means that miners will receive half the amount of coins for each mined block, resulting in a significant loss of income.

Will 2023 be a profitable year for miners?

Let's sum up. Regardless of the state of the cryptocurrency market, the hashrate of the Bitcoin network is increasing. In other words, mining bitcoin is becoming increasingly difficult. Large capital players dominate this market because they can add new, more efficient equipment and also choose not to sell bitcoins when it is not profitable.

Average weekly bitcoin network hash rate Source: Glassnode

Average weekly bitcoin network hash rate Source: Glassnode

The cryptocurrency market's rise, which is already underway, may make life easier for miners. In theory, this can level out the reduction of the rewards after the halving, but whether the positive trend will continue until the next halving is unknown. Hence, it is important to not just rely on a high BTC price but also consider all the associated risks. 

The content on The Coinomist is for informational purposes only and should not be interpreted as financial advice. While we strive to provide accurate and up-to-date information, we do not guarantee the accuracy, completeness, or reliability of any content. Neither we accept liability for any errors or omissions in the information provided or for any financial losses incurred as a result of relying on this information. Actions based on this content are at your own risk. Always do your own research and consult a professional. See our Terms, Privacy Policy, and Disclaimers for more details.

Articles by this author
Free ChatGPT Plus Now Available for College Students in North America

Free ChatGPT Plus Now Available for College Students in North America

OpenAI has announced free access to ChatGPT Plus for college and university students in the United States and Canada until May 2025.

Vlad Vovk
BTC Faces Resistance at $85K as Trade War Pressure Mounts

BTC Faces Resistance at $85K as Trade War Pressure Mounts

Bitcoin remains pinned under $85,000, as global markets digest rising tensions between the U.S. and China over fresh tariffs.

Anton Kryshtal
BTC’s Wild Ride Isn’t Over: Fed’s Move Up Next

BTC’s Wild Ride Isn’t Over: Fed’s Move Up Next

Recent tariff implementations by President Trump, met with China’s retaliatory measures, have introduced significant volatility into the cryptocurrency market. Investors are now keenly awaiting employment statistics and the Federal Reserve’s forthcoming decisions on interest rates.

Dmytro Psevdonimenko
Hyperlane Kicks Off HYPER Token and Airdrop Sign-Up

Hyperlane Kicks Off HYPER Token and Airdrop Sign-Up

Hyperlane has launched its own HYPER token and is offering an airdrop for early adopters. Eligibility checks and registration are open until April 13.

Dmytro Psevdonimenko
Hot Crypto Discussions on X Today: Market Volatility, Crypto ETFs, & More

Hot Crypto Discussions on X Today: Market Volatility, Crypto ETFs, & More

Today, the crypto community is discussing market volatility, regulations, and the future of crypto ETFs, among other topics on X/Twitter.

Anahit Avetisyan
The Man Who Forgot $240M: A Bitcoin Tragedy for the Ages

The Man Who Forgot $240M: A Bitcoin Tragedy for the Ages

This is perhaps the most iconic crypto loss story of all time. In 2011, Stefan Thomas received 7,002 BTC for making a video. Today, that stash is worth $240 million. But he forgot the password. An entire fortune locked away forever.

Elina Moskovchuk
Sam Altman, ChatGPT, and the AI Spark That Lit Up Crypto

Sam Altman, ChatGPT, and the AI Spark That Lit Up Crypto

At the end of 2022, a public beta of an AI-powered product quietly launched. It looked like nothing more than a simple chat window. However, it turned out to be a global sensation.

Elina Moskovchuk
Fiat Money vs Commodity Money: What’s the Difference?

Fiat Money vs Commodity Money: What’s the Difference?

Explore the key differences between fiat money and commodity money. Learn about their intrinsic value, historical context, advantages, disadvantages, and real-world examples.

The Coinomist
Blockchain Trilemma: Explained with Real-World Examples

Blockchain Trilemma: Explained with Real-World Examples

In recent years, blockchain technology has gained immense popularity, being the backbone of cryptocurrencies, decentralized finance (DeFi), and various other applications. However, as the technology continues to evolve, a crucial problem has surfaced: the blockchain trilemma.

The Coinomist
How Is a Cryptocurrency Exchange Different from a Cryptocurrency Wallet?

How Is a Cryptocurrency Exchange Different from a Cryptocurrency Wallet?

A guide detailing the differences between cryptocurrency exchanges and wallets. Learn about their distinct roles, security features, liquidity, and user control in the digital asset ecosystem.

The Coinomist
What Are Assets? Differences Between Coins and Tokens

What Are Assets? Differences Between Coins and Tokens

Discover the meaning of assets in finance and crypto, and learn the key differences between coins and tokens to make informed investment decisions.

The Coinomist
What Is a Margin Call? An Essential Guide

What Is a Margin Call? An Essential Guide

A comprehensive guide to understanding margin calls in trading. Learn what triggers them, how they work, their risks, and strategies to manage or avoid them

The Coinomist
What Happens When Bitcoin Runs Out? Predictions and Strategies

What Happens When Bitcoin Runs Out? Predictions and Strategies

Explore what happens when Bitcoin reaches its 21 million supply cap. Learn how the shift from block rewards to transaction fees could impact miners, investors, and the entire ecosystem.

The Coinomist
Arthur Hayes Challenges Fed Independence in His New Essay “The BBC”

Arthur Hayes Challenges Fed Independence in His New Essay “The BBC”

In his latest essay “The BBC,” Arthur Hayes examines the emotional pressures on the Federal Reserve and the monetary policy challenges that could lead to increased liquidity in the crypto market.

Dmytro Psevdonimenko
Trump’s “US Crypto Reserve” Plan: A Game Changer or Just Talk?

Trump’s “US Crypto Reserve” Plan: A Game Changer or Just Talk?

It takes just one post from Trump to stir the crypto market. Recently, he announced on Truth Social that the evaluation of a strategic crypto reserve is in progress as part of his broader Trump crypto policy.

Anahit Avetisyan
MORE
Where to Spend Your Crypto Daily in Dubai: From Food to Fashion

Where to Spend Your Crypto Daily in Dubai: From Food to Fashion

Living for cryptocurrency in Dubai has become a real experience by 2025. Discover how to use your digital assets for food, shopping, and daily essentials in this futuristic crypto city.

Yara Zornell
Dubai Lets You Rent Homes and Cars With Bitcoin. Here’s What to Know

Dubai Lets You Rent Homes and Cars With Bitcoin. Here’s What to Know

Now, you can rent in Dubai with crypto, signing rental agreements using BTC, altcoins, or USDT for both short-term vacations and long-term stays as an expat.

Yara Zornell
MORE