There is a significant difference in household electricity costs for individual Bitcoin (BTC) miners around the world. While one bitcoin costs $208,500 to produce in Italy, it is about 783 times cheaper in Lebanon, according to a recent report.
CoinGecko’s report, published Aug. 17, revealed that just 65 countries are profitable for individual bitcoin miners based on household electricity costs alone. Of these, 34 countries are in Asia, while there are only five in Europe.
However, solo bitcoin miners are at odds with the world average of household electricity costs.
“The average household electricity cost to mine one bitcoin is $46,291.24, which is 35% higher than the average daily price of 1 BTC in July 2023 ($30,090.08),” the report states.
The report identified Italy as the most expensive country for private bitcoin mining at $208,560.33 per bitcoin. At the time of publication, this suggests that the cost of mining one bitcoin in Italy is equivalent to around eight bitcoins.
Austria followed with US$184,352.44 and Belgium with US$172,381.50.
The most unprofitable countries for mining 1 BTC. Source: CoinGecko
Meanwhile, household electricity tariffs in Lebanon allow individual miners to generate one bitcoin for as little as $266.02. Based on this data, this is about 783 times cheaper than the cost of mining one bitcoin in Italy, which is $208,560.33.
Iran followed with a production cost of $532.04 per bitcoin. But even though Iran legalized bitcoin mining in 2019, the country has since banned legal operations multiple times, citing winter congestion on energy grids.
On Jan. 4, Cointelegraph reported that about 150,000 crypto-mining rigs were seized by the Iranian Organization for the Collection and Sale of State Property (OCSSOP).
Related: Bitcoin mining researchers claim that new tech ups have a 260% chance of hashing
On Aug. 19, Binance CEO Changpeng “CZ” Zhao posted a screenshot of this report’s data on X (formerly Twitter) and asked his 8.6 million followers why people in these low-powered countries weren’t mining bitcoin.
Why shouldn’t they? ♂️ pic.twitter.com/cD1TSgOZzx
— CZ Binance (@cz_binance) August 19, 2023
However, CZ remained skeptical and believes there may be other factors to consider. Nonetheless, he suggested that it is worth investigating further:
“The report probably didn’t take into account feasibility and other logistical issues. But if the data is correct, there definitely seem to be some potential opportunities.”
CZ paid tribute to an X user who explained that many of these countries don’t have enough electricity to make the most of cheap electricity costs.
“Most of these countries face power shortages and typically shut down their heavy industry during the summer or peak periods,” the X user explained.
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