logo aglasem.com

How Mining Pool Economics Compares Solo Mining and Mining in a Pool

Jun 27 , 2025

Cryptocurrency miners have to decide: should they go it solo to aim for great success, or should they partner with others to get regular payouts? Choosing between solo and pool mining is important because it affects your finances in real life. As Bitcoin mining evolves post-2024 halving (with rewards slashed to 3.125 BTC per block), understanding these economics isn’t optional—it’s survival.

The main issue is whether the miner wants independence or wants things to be predictable. 

Crypto’s solo mining is a lottery where the prizes are very high. Miners mine on their own with the hardware they have. If they win, they get all of the 3.125 BTC reward, without any need to share. The problem is that due to the high network difficulty (more than 885 EH/s), mining a single block on your own is like winning a lottery in the sky.

 

Instead of one big, impressive reward, pool mining offers many smaller and independent ones. Many miners combine all their computing resources together in a “pool.” When a block is solved in the pool, the rewards are shared out among the miners depending on how much work they did. It means you’ll get fewer fish every day, but your meals will be steady and regular. 

Profitability is possible in several ways

Solo Mining Equation 

Solo mining profitability by itself depends completely on the unpredictable element of variance. Imagine a miner that has 1 PH/s of power running.

Currently, the Bitcoin network is running at a hash rate of approximately 885,000 PH/s. 

The probability that they will solve a block? There is, on average, 1 case every 885,000 per 10-minute block cycle. 

On average, it takes 16.8 years for someone to hit one major obstacle.  

 

Every so often, luck comes into the picture. During March 2025, a solo miner managed to win a $266,000 reward despite the long odds against him. These stories give us hope, though chances are very low that it will actually happen. 

 

A Look at How Pool Mining Works with Small Shares 

Pools need a lot of data and transactions to succeed. Because they gather a lot of computing power, pools can frequently solve blocks, including some on a daily basis. You can receive rewards through models called PPS (Pay Per Share) or PPLNS (Pay Per Last N Shares). Although pool fees and shared rewards decrease payouts, they come in a timely manner.

When a miner gives 1 TH/s to a big pool, they may make $1-$3 each day once electricity is considered 

At a large scale, mining provides a reliable income that helps miners handle big changes in the market.  

Important Differences That Change Your Revenue 

Reward Rhythm

Solo: Big money winds up in your wallet, but it happens only occasionally.

Pool: Frequent and small micropayments (small amounts of a block) are made.

Hardware Hurdles

Solo: It is nearly impossible for most miners to compete in solo mode because they need top-of-the-line ASICs.

Pool: Even people with only a few ASICs or cloud contracts can try mining.

Cost Calculus

Solo: If there are no rewards for a long time, Solo has to cover all costs of hardware and electricity.

Pool: The costs are shared over time, so short breaks do not hurt as much.

The difference between luck and logic 

Solo: The profit can change a lot depending on statistics.

Pool: The amount of earnings is directly related to the hashrate you add.

Operational Overhead

When you’re solo, you decide everything, including what to trade and the dates to upgrade.

The pool is convenient to set up, but you lose some control to those who run it.

The Success Depends Greatly on the Hardware

Mining companies are always trying to improve their efficiency. Today’s best mining machines blend insane hashrate with jaw-dropping efficiency: 

Bitmain Antminer S21 Pro (234 TH/s, 15 J/TH): This miner makes around $7.80 per day at an electricity price of $0.06 per kWh.

MicroBT Whatsminer M60S (186 TH/s, 18.5 J/TH) will make about $5.22 a day.

For people mining solo, these machines are necessary to get involved in mining. It would be useless to compete with industrial farms (which run Bitmain Antminer S21 XP Hydro at 473 TH/s) without these. Even with an older model such as the Antminer S19j Pro (100 TH/s), pool miners can still make a small but steady profit every day.

Who should take charge of what when it comes to strategy?

Cases Where Solo Mining Works Better 

    People mining with less than 2 cents per kilowatt-hour electricity (for example, at stranded gas or geothermal sites) 

    Those with more than 500 Petahash or more (average to hit blocks in a year) 

    People using privacy-oriented mining who do not want to give any KYC information

Why Pools Dominate for Most

    Small-scale miners: Their income is stable even when the price of cryptocurrencies fluctuates a lot

    In regions where electricity is costly, the pool earnings help make up for the extra cost

    New entrants: Practice how mining works in a safe way that won’t cost you much

Mining’s economy is changing and needs to adjust for the future

After the last halving, the 20-30% of block rewards that now come from transaction fees is expected to rise. This setup is a bit more helpful to pools. 

Solo miners must get a complete block to receive their rewards.

Pools can depend on the regular income from fee-rich blocks to smooth out the lows in their revenue.

Using renewables is changing the electricity industry. Those using very cheap energy (Norway or Texas) can enjoy an edge over others, whether they work by themselves or with others.

To sum up, the real issue is about how much risk someone is willing to take, not their preferences. 

The main advantage of pool mining is that it’s safer. Just as choosing bonds instead of bitcoin gives you predictability, it makes sure that you have reliable investments. Solo mining is just another type of gambling; when you get lucky, it’s exciting, but while you wait, it can be very disappointing.

Most miners will prefer to join a pool in order to survive the tough competition in 2025. They turn Bitcoin mining from a high-stakes lottery into a calculable trade—one where hardware hums daily, rewards trickle in steadily, and profitability is something you measure, not pray for.

To sum up, in mining as in markets, it is often those who wait it out longest who make the most money. Having a pool gives you enough time to wait for the next increase in prices.