CoinGecko’s analysis on August 17 highlighted the vast differences in electricity expenses worldwide to mine one Bitcoin (BTC), the largest cryptocurrency by market cap.
On average, as an independent miner, one would consume roughly 266,000 kilowatt-hours (kWh) of power to mine a Bitcoin. This process would span nearly seven years.
Read Also: Russia Becomes World’s Second-Largest in Bitcoin Mining as U.S. Crypto Regulation Remains Uncertain
According to Coingecko, a leading crypto data aggregator, mining 1 BTC, based on average household electricity rates, costs approximately $46,291. This value is 35% more than the regular daily price of a single BTC, which stood at $30,090.08 in July 2023.
These costs, however, can vary according to the country or region in question. Europe stands out with the highest average expense at $85,767.84, in contrast to Asia’s lowest average of $20,635.62.
The study mentions that solo mining of a Bitcoin becomes profitable in only 65 nations when considering household electricity costs. Predominantly, these countries are situated in Asia and Africa, regions known for relatively cheaper electricity.
Furthermore, the research mentions that 9 nations have outright prohibited activities related to cryptocurrencies, with an additional 42 countries enforcing indirect regulations.
A list of countries with the highest electricity cost to produce 1 BTC include:
- Italy: $208,560.33
- Austria: $184,352.44
- Belgium: $172,381.50
- Denmark: $166,795.06
- Germany: $163,336.79
- Ireland: $159,612.50
- Lithuania: $152,163.92
- Netherlands: $137,798.79
- United Kingdom: $130,616.23
- Cayman Islands: $128,222.04
In contrast, countries, where electricity costs are minimal for Bitcoin mining, are:
- Lebanon: $266.02
- Iran: $532.04
- Syria: $1,330.10
- Ethiopia: $1,596.12
- Sudan: $2,128.17
- Libya: $2,660.21
- Kyrgyzstan: $2,660.21
- Angola: $3,724.29
- Zimbabwe: $3,990.31
- Bhutan: $4,256.33
Read Also: Bitcoin (BTC) Mining is a Big Net Plus for the Environment –Texas Senator Ted Cruz
CZ Binance Reacts
Reacting to the list of countries where electricity costs are minimal, Changpeng Zhao (CZ), the CEO of Binance, wrote, “Why wouldn’t they?”
Why wouldn't they? 🤷♂️😂 pic.twitter.com/cD1TSgOZzx
— CZ 🔶 Binance (@cz_binance) August 19, 2023
Finally, it’s worth noting specific data points for a couple of countries. In Turkey, the electricity cost for producing one BTC is roughly $22,000. For the United States, based on CoinGecko’s data, the cost is around $46,280.
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