Household Electricity Expenses for Bitcoin Miners
CoinGecko’s recent report has revealed that generating one Bitcoin in Italy costs $208,500, while in Lebanon it is approximately 783 times cheaper. This is a significant worldwide contrast in household electricity expenses for individual Bitcoin (BTC) miners. Only 65 countries are profitable for solo Bitcoin miners, with 34 in Asia and five in Europe.
However, 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). This places solo Bitcoin miners at odds with the worldwide average of household electricity costs.
Cost of Mining Bitcoin in Different Countries
The report revealed that Italy is the most expensive country for Bitcoin mining in households, with a cost of $208,560.33 per Bitcoin. At the time of the report, this price was equivalent to the value of roughly eight Bitcoins.
Following Italy was Austria with a rate of $184,352.44, and Belgium at $172,381.50.
Meanwhile, Lebanon’s electricity rates are much lower, allowing miners to produce one Bitcoin for just $266.02. This means that mining one Bitcoin in Lebanon is 783 times cheaper than in Italy.
Iran is the next cheapest, with a cost of $532.04 per Bitcoin. However, despite legalizing crypto mining in 2019, the country has since banned legal operations multiple times, citing stress on energy grids during winter.
Exploring Cryptocurrency Mining in Low Electricity Countries
On January 4, Cointelegraph reported that Iran’s Organization for Collection and Sale of State-Owned Property (OCSSOP) had seized approximately 150,000 pieces of crypto mining equipment. This prompted Binance CEO Changpeng “CZ” Zhao to post a screenshot of the report’s data on X (formerly Twitter) and question his 8.6 million followers why individuals in these countries with low electricity wouldn’t mine Bitcoin.
CZ remained skeptical and believes there might be more factors to consider.
The X user stated that “Most of these countries are facing a shortage of electricity and usually turn off their heavy industries in the summer or during peak hours”, which has been a common issue for many web 3.0 crypto projects such as fetch.ai crypto, x.ai, and data.ai recent.
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