A global disparity in household electricity costs for solo Bitcoin mining has recently been highlighted. The variance is staggering, with some countries costing nearly 783 times more than others to mine a single Bitcoin.
The Cost Dynamics of Bitcoin Mining
Based on a CoinGecko report published on August 17th, out of all the countries analyzed, only 65 render profitable conditions for individual Bitcoin miners considering the household electricity rates alone. Surprisingly, Asia dominates with 34 countries, whereas Europe has just five.
Mining a single Bitcoin at the average household electricity rate will set you back by approximately $46,291.24. This amount is 35% higher than Bitcoin’s average daily price for July 2023, which is $30,090.08.
Mining Costs Vary Wildly
Italy emerges as the most expensive country for household Bitcoin mining. At an astonishing $208,560 per Bitcoin, the cost of mining one Bitcoin is equivalent to buying almost eight Bitcoins at their current market value.
Austria and Belgium closely trail Italy, demanding $184,352 and $172,382 to mine a single Bitcoin.
Lebanon boasts some of the lowest costs in the Bitcoin mining sector. Here, individuals can mine a Bitcoin for a mere $266. This rate is roughly 783 times more economical than Italy.
Iran presents an exciting scenario. With a cost of $532 per Bitcoin, it seems appealing. Yet, frequent legal bans, mainly due to energy grid stress during winters, create uncertainties for miners.
A Perspective from Binance CEO, Changpeng “CZ” Zhao
On August 19th, CZ shared the report’s data on X, igniting a discussion among his 8.6 million followers. The main query: Why aren’t individuals in these low-cost countries mining more Bitcoins?
However, CZ urged caution, indicating potential unaccounted variables. He stated, “The report might have overlooked feasibility and other logistics. Yet, if the data holds, there’s a chance for unexplored opportunities.“
An X user shed light on the possible deterrent: electricity shortages.
While household electricity costs play a significant role in Bitcoin mining profitability, they’re just one piece of the puzzle. Legal landscapes, energy availability, and other logistical factors are equally crucial. Potential miners must consider all these aspects to make informed decisions.
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