Bitcoin Mining Costs Globally – A CoinGecko Insight
When considering Bitcoin mining profitability, geographic location plays a pivotal role. A recent CoinGecko report sheds light on the substantial disparities across countries, primarily driven by varying electricity rates.
Europe: The Expensive Mining Hub
Interestingly, Europe emerges as a region with several countries that make Bitcoin mining a pricey affair. Italy stands out as the region’s costliest, with the price of mining one Bitcoin pegged at a staggering $208,560. This stark figure makes Italy the leader of a list that includes other European nations such as Austria ($184,352) and Belgium ($172,382).
Asia Dominates Affordable Mining Landscape
On the flip side, Asia shows promising profitability for solo Bitcoin miners. The report highlights that of the 65 countries where Bitcoin mining is profitable based on household electricity costs, 34 are in Asia. Lebanon takes the spotlight with a mere $266 needed to mine one Bitcoin, making it a jaw-dropping 783 times cheaper than Italy. Iran follows suit, with costs at $532 per Bitcoin, although the country’s fluctuating stance on Bitcoin mining legality remains a challenge.
What Does the Global Average Indicate?
Taking a broader perspective, the worldwide average cost to mine one Bitcoin stands at $46,291.24. This figure is intriguing, especially when juxtaposed against the average Bitcoin price in July 2023, which was $30,090.08. The implications? Solo miners globally face an uphill battle with costs being 35% higher than the average Bitcoin price.
Mining Reality Check with Binance CEO
Binance’s head honcho, Changpeng “CZ” Zhao, brought the report’s findings into the limelight on X (formerly Twitter), sparking a conversation on the apparent profitability in countries with low electricity costs. While the data’s allure is undeniable, CZ believes other logistical factors need thorough assessment. An insightful comment on his post highlighted that many low-cost countries grapple with electricity shortages, rendering large-scale mining impractical.
The CoinGecko report underscores the need for potential Bitcoin miners to evaluate not just the electricity costs but also the feasibility of operations based on geographical location. With a dynamic crypto landscape, such insights prove invaluable for both new entrants and seasoned miners.
