cost of mining bitcoin in 198 different countries
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It is estimated that it takes 1,449 kilowatt hours (kWh) of energy to mine a single bitcoin. that’s the same amount of energy as an average ee. uu. domestic consumption in approximately 13 years.
Reading: How much to mine bitcoin
Given the large amount of energy required to mine bitcoins, it can be an expensive undertaking. but exact prices fluctuate, depending on location and the cost of electricity in the area.
what are the cheapest and most expensive places to mine this popular cryptocurrency? This chart from metallurgist 911 provides a snapshot of the estimated cost of mining bitcoin around the world, using relative prices and costs as of March 23, 2022.
how does bitcoin mining work?
Before diving in, it’s worth briefly explaining the basics of bitcoin mining and why it requires so much energy.
When someone mines bitcoins, what they are actually doing is adding and verifying a new transaction record on the blockchain: the bank’s decentralized ledger where bitcoin is traded and distributed.
To create this new record, crypto miners must unravel a complex equation generated by the blockchain system.
Possibly tens of thousands of miners are competing to crack the same code at any given time. only the first person to solve the equation is rewarded (unless you are part of a mining pool, which is essentially a group of miners who agree to combine efforts to increase their chances of solving the equation).
The faster your computing power, the higher your chances of winning, so solving the equation first requires powerful equipment that consumes a lot of energy.
the costs and benefits of bitcoin mining in 198 countries
Across the 198 countries included in the dataset, the average cost to mine bitcoin was $35,404.03, more than the value of bitcoin of $20,863.69 on July 15 of 2022. although it is important to keep in mind that the fluctuating prices of energy, and more or less miners in the bitcoin network, constantly change the energy needed and the final cost.
Here is a breakdown of the cost of mining one bitcoin in each country on March 23, 2022, along with the potential profit after accounting for mining costs:
Venezuela ranks as the number one most expensive country to mine bitcoin. mining a single bitcoin in the South American country costs a whopping $246,530.74, which means that the process is far from profitable. energy costs are so high in the country that miners would spend $225,667.05 for just one bitcoin.
On the opposite end of the spectrum, the cheapest place to mine bitcoins is kuwait. It costs $1,393.95 to mine a single bitcoin in Kuwait, which means miners could make $19,469.74 in profit.
This Middle Eastern country has some of the cheapest electricity in the world, with a kWh costing an average of just 3 cents. For context, the average cost of a kWh in North America is 21 cents.
the race has started
Despite the high costs of bitcoin mining, many people believe that it is worth the initial investment.
Something that makes bitcoin particularly attractive is its finite supply: there are only 21 million coins available to mine, and as of the publication of this article, more than 19 have already been mined. million bitcoin.
Although the price of bitcoin (btc) is notorious for its volatility, its value has grown significantly over the last decade. And if cryptocurrencies go mainstream like many people think they will, this could drive the price of bitcoin even higher.