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Bitcoin's mining difficulty has risen to a new all-time high of 134.7 trillion in September 2025, a massive 28% increase after the 2024 halving. This increase shows the network's automatic adjustment to keep a 10-minute block time despite growing hashrates.
As a result, mining has become increasingly resource-intensive, with the subsequent adjustment estimated to increase the difficulty level to 139.77 trillion on September 18, 2025.
The rising difficulty has created a challenging environment for miners, raising operational costs and shrinking profit margins. Additionally, large players with access to advanced hardware and inexpensive energy have gained an advantage, while smaller, solo miners find it hard to stay competitive.
The increasing difficulty of Bitcoin mining reduces solo miners' chances of success, now at 1 in 2,800, which could mean up to eight years to mine a block. This tough reality has caused many small miners to either exit the market or join mining pools, further consolidating hashpower in the hands of large institutions.
In certain parts of the world, like the US, the cost to mine an individual Bitcoin can cost over $15,000, while other areas like Oman are much more manageable, costing around $1,200. These disparities are substantial and pose a challenge for solo miners, particularly as energy consumption continues to rise.
For most solo miners, the high cost of upgrading their hardware, which can range from $5,000 to $10,000 per unit, has made staying in the game impossible.
As individual miners leave, the mining industry shifts toward greater centralization, with institutions commanding an increasing portion of hashpower. By the end of September 2025, Foundry and Antpool combined lead the market with more than 48% of the total hashpower of the Bitcoin network, where Foundry controls 30% and Antpool 18%.
These institutions can take advantage of economies of scale, have access to affordable energy sources, and have access to state-of-the-art mining equipment, like Bitmain's S21+ ASICs, to stay competitive.
This centralization might threaten Bitcoin's decentralization, raising the risk of a 51% attack. If one entity controls over half of Bitcoin's hashpower, it could manipulate the network, risking its integrity. Although this hasn't happened, increasing institutional consolidation raises worries about future stability.
For miners to expand, Bitcoin's price must rise sufficiently to cover rising costs. The average cost for mining one Bitcoin has increased to $26,000-$50,000 based on location and efficiency. As of September 2025, Bitcoin trades between $109,000 and $115,000, providing a profit margin for efficient miners, but this margin is shrinking, especially in costly regions.
Experts suggest that for mining operations to be viable in the long term, the Bitcoin price must stay above $110,000. Below $68,100, miners with marginal setups could risk insolvency. The cost of Bitcoin is vital in sustaining the expansion of miners and maintaining the security and decentralization of the network.
Also Read: Bitcoin News Today: Can BTC Break $112K Resistance? Bulls Await Reversal at $100K Support
