- Bitcoin mining in Lebanon is approximately 783 times cheaper than in Italy.
- CoinGecko’s report reveals only 65 countries are profitable for individual Bitcoin miners based on household electricity rates.
The Great Bitcoin Mining Disparity
Electricity Costs: The Make or Break for Bitcoin Miners The decentralized world of Bitcoin is bound together by miners, those who use computational power to validate and add transactions to the blockchain. However, the economic feasibility of this crucial activity is largely influenced by the electricity costs miners bear. According to a recently divulged report by CoinGecko, there’s a staggering disparity in these costs globally.
In Italy, one would spend a staggering $208,560 to mine a single Bitcoin, primarily due to the elevated household electricity costs. In stark contrast, the same activity in Lebanon incurs only about $266, making it nearly 783 times more economical. Such pronounced differences highlight the role local infrastructures and energy pricing play in the decentralized crypto world.
The report provides further intriguing insights. Out of the global canvas, only 65 countries present a profitable environment for solo Bitcoin miners, considering only household electricity tariffs. Asia emerges as the dominant continent in this aspect, boasting 34 such countries, whereas Europe, despite its technological advancements, only contributes five to the list.
One point of reflection is the overarching trend where the average cost of mining a single Bitcoin globally stands at $46,291.24. When juxtaposed with the average Bitcoin value in July 2023, which was $30,090.08, the cost exceeds the coin’s worth by 35%.
Italy’s position as the highest cost-bearing country for Bitcoin mining is closely followed by Austria and Belgium, with mining costs at $184,352 and $172,382 respectively. To put Italy’s costs into perspective, mining a Bitcoin there equates to the value of approximately eight Bitcoin.
In the backdrop of these statistics, Lebanon’s cost-efficiency becomes even more striking. The subsequent position after Lebanon in the cost-effective league is occupied by Iran, where producing a Bitcoin costs around $532. However, Iran’s landscape for crypto mining is riddled with complexities. Despite giving a nod to Bitcoin mining back in 2019, Iran has oscillated its stance, primarily due to the strain on its power grids, especially during winter.
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The intrigue around these findings captured the attention of Binance CEO Changpeng “CZ” Zhao, who shared these insights on X (formerly known as Twitter). While he expressed skepticism, pondering upon other potential factors that the report might not have considered, he did opine that if accurate, there lies a sea of opportunities for these nations.
Why wouldn't they? 🤷♂️😂 pic.twitter.com/cD1TSgOZzx
— CZ 🔶 Binance (@cz_binance) August 19, 2023
However, the viability isn’t that straightforward. As one user on X elucidated, many countries with cheap electricity rates grapple with power shortages, often leading to the shutdown of intensive industries during peak times or summer.
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