ALBAWABA- In the dynamic world of Bitcoin mining, electricity prices are crucial in deciding profitability. Bitcoin mining has developed from a straightforward task powered by desktop PCs to a sophisticated operation requiring specialized technology. The energy needed for mining increased in tandem with the rise in Bitcoin's popularity. Today, a single Bitcoin requires a significant amount of electricity to mine, making the price of electricity a key component in deciding profitability. This article covers the most economically advantageous Arab nations for Bitcoin mining operations as well as the electricity usage related to the activity.
The Electricity Demand for Mining Bitcoin
A single Bitcoin mining requires a lot of energy. To mine only one Bitcoin, a solo miner needs about 266,000 kilowatt-hours (kWh) of electricity. This amounts to nearly seven years of nonstop mining at a monthly energy consumption of 143 kWh. In order to put this into perspective, in the year 2021, the monthly electricity consumption for Bitcoin mining will be around one-sixth of that of a typical American family.
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Other than the price of electricity, a number of factors, such as the hash rate of mining hardware and the mining difficulty of the network, have a considerable impact on the profitability of Bitcoin mining. This article focuses on examining household electricity expenses globally, even though some miners decide to join mining pools to increase their chances of success. It offers useful perspectives for lone miners operating inside a decentralized network and offers insights into how these expenses are distributed across various areas.
Evolution of Bitcoin Mining and Electricity Usage
In its early days, Bitcoin mining was very simple, used little electricity, and was done primarily using desktop PCs. However, as Bitcoin gained traction and public interest grew dramatically, the procedure grew more intricate. Specialized hardware, especially application-specific integrated circuits (ASICs), became the norm. Unfortunately, the use of these sophisticated tools increased electricity use dramatically, which distanced mining from its prior open accessibility.
The Cost of Mining 1 Bitcoin: Household Electricity Costs
For one BTC, the typical residential electricity bill is $46,291.24. Compared to the average daily price of one BTC in July 2023, which was $30,090.18, this price is 35% higher. The cost of home energy varies significantly by region, with Europe having the highest average cost at about $85,767.84.
The lowest average cost for lone miners is found in Asia, at $20,635.62. The only region where the average cost of household power makes mining BTC alone profitable is this one. The cost of electricity varies significantly across Asia, though. For instance, energy costs only $266.20 in Lebanon, compared to $64,111.02 in Japan, which is a significantly higher price.
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Solo Bitcoin Mining: Profits in Asia
Only 65 nations worldwide provide the lucrative potential for mining alone using only domestic electricity prices. Five of these nations are located in Europe, while eight are located in the Americas, especially in South America and the Caribbean. With 18 countries, Africa appears as a noteworthy region. Of the 34 countries in Asia, however, 34 have the ability to support viable solo mining operations.
Cheap Electricity Despite Crypto Bans
Despite the fact that certain countries have banned cryptocurrency mining and trading, some countries continue to give inexpensive electricity to BTC miners. Notably, practically every country that is fully outlawed, with the exception of Morocco, has the potential for profitable BTC solo mining. This highlights the intricate link between energy costs and cryptocurrency regulation.
The Most Profitable and Unprofitable Countries for BTC Mining
The top 10 countries where BTC mining is most profitable due to low household electricity costs are predominantly in Asia and Africa:
1. Lebanon ($266.02)
2. Iran ($532.04)
3. Syria ($1330.10)
4. Ethiopia ($1596.12)
5. Sudan ($2128.17)
6. Libya ($2660.21)
7. Kyrgyzstan ($2660.21)
8. Angola ($3724.29)
9. Zimbabwe ($3990.31)
10. Bhutan ($4256.33)
Conversely, it is unprofitable to mine BTC in 82 countries, with the top 10 most expensive countries for mining being predominantly in Europe:
1. Italy ($208,560.33)
2. Austria ($184,352.44)
3. Belgium ($172,381.50)
4. Denmark ($166,795.06)
5. Germany ($163,336.79)
6. Ireland ($159,612.50)
7. Lithuania ($152,163.92)
8. Netherlands ($137,798.79)
9. United Kingdom ($130,616.23)
10. Cayman Islands ($128,222.04)
Energy use for BTC mining has amped up substantially, as the cost of electricity is a key factor in determining its profitability. This article looked at how different countries' electrical needs for mining BTC compare internationally. It sheds light on the intricate relationship between energy costs, cryptocurrency legislation, and mining profitability by highlighting the most and least profitable nations for solo BTC mining. Miners will need to handle these issues as the Bitcoin environment changes further to secure long-term success.
