Structural issues

Challenges in the Current Hashrate Economy

Despite the rapid growth of the global computing power market, the industry is becoming increasingly unfamiliar and inaccessible to most retail investors. The crypto-based computing economy, represented by Bitcoin mining, has completely transitioned from an era of "individual participation" to one defined by heavy assets, high entry barriers, and low liquidity.

1) High Hardware Barrier — Beyond the Reach of Ordinary Investors

Take the current mainstream Bitcoin mining machines as an example: a high-performance miner like the Antminer S19 Pro typically costs between $2,000 to $3,000 USD.

And that’s only the beginning — investors must also cover ongoing costs such as data center construction, power infrastructure, cooling systems, maintenance, and internet connectivity. Total investment can easily exceed hundreds of thousands or even millions, making it nearly impossible for individuals or small teams to participate.

2) Solo Miners Struggle to Earn Rewards

The era of “garage miners” is long gone. Today, Bitcoin network hashrate is highly concentrated in large-scale mining farms and industrial-grade mining pools. Individual miners, with minimal hash power contribution, have virtually no chance of successfully mining a block. Even if occasional rewards are achieved, they are often negated by electricity bills, maintenance costs, or network latency, leading to sustained losses over time.

In practical terms, "it is nearly impossible for the average person to mine Bitcoin on their own" — this is not an exaggeration, but a hard truth of the current industry.

3) High Electricity Costs & Environmental Burden

A mining rig is essentially a high-powered, continuously operating “computational furnace.” Bitcoin’s network requires millions of machines to run simultaneously worldwide, leading to massive electricity consumption. According to the Cambridge Bitcoin Electricity Consumption Index (CBECI), Bitcoin’s annual energy usage has at times exceeded that of entire countries like Argentina.

For most users who lack favorable electricity agreements, high energy costs are a direct killer of mining profitability. Furthermore, poorly planned setups and illegal mining operations in some regions have caused local regulatory and environmental issues, leading to ecological degradation and compliance risks.

4) Poor Investment Liquidity — No Exit Mechanism

Traditional mining investments are virtually illiquid and locked-in from the moment of purchase. Once a mining machine is acquired, it becomes a heavy, indivisible asset — it cannot be resold in parts, nor traded or liquidated via standardized platforms.

Moreover, raw hashrate lacks proof of ownership or income records, making it ineligible for staking, lending, or any other on-chain financial operations. This severs its connection to the Web3 financial ecosystem, reducing its value and usability as a digital asset.