A recent report by CoinGecko has highlighted the significant contrast in household electricity expenses for individual Bitcoin (BTC) miners around the world. According to the report, producing one Bitcoin in Italy costs $208,500, while in Lebanon, it is roughly 783 times cheaper.
The report, published on August 17, revealed that only 65 countries are currently profitable for solo Bitcoin miners, based solely on household electricity costs. Out of these, 34 countries are located in Asia, while Europe has only five. This indicates that solo Bitcoin miners are facing challenges in many regions due to the high average household electricity costs.
According to the report, 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). Italy emerged as the costliest country for household Bitcoin mining, with a cost of $208,560.33 per Bitcoin. This means that the cost of mining one Bitcoin in Italy is roughly equal to the value of approximately eight Bitcoins.
Following Italy, Austria ranked second with a cost of $184,352.44, and Belgium came in third with a cost of $172,381.50.
On the other hand, Lebanon stood out as the country with the lowest household electricity rates, enabling individual miners to generate one Bitcoin for just $266.02. This cost is approximately 783 times cheaper than mining a Bitcoin in Italy. Iran ranked second, with a production cost of $532.04 per Bitcoin. However, it is worth noting that despite legalizing Bitcoin mining in 2019, Iran has banned legal operations on several occasions due to concerns about energy grid stress during winter. In January 2023, Iran’s Organization for Collection and Sale of State-Owned Property (OCSSOP) seized around 150,000 pieces of crypto mining equipment.
Binance CEO Changpeng “CZ” Zhao shared the CoinGecko report on social media, questioning why individuals in countries with low electricity costs wouldn’t engage in Bitcoin mining. However, CZ also acknowledged that there might be additional factors to consider before jumping into mining, such as feasibility and logistics.
One user pointed out that many of these countries facing cheaper electricity costs actually lack sufficient electricity to make the most of their advantage. Some countries regularly turn off heavy industries during peak hours or in summer due to electricity shortages.
The report by CoinGecko underscores the significant differences in household electricity expenses for Bitcoin mining across the globe. It also highlights the challenges faced by solo Bitcoin miners in regions with high electricity costs, as well as the potential opportunities for mining in countries with lower costs. Further exploration and analysis are needed to determine the feasibility and logistics of mining in these countries with cheaper electricity.
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