Based on the cost of household electricity, nine of the ten countries with the lowest mining profits for bitcoins are located in Europe. The cost of electricity for individual Bitcoin miners varies widely across the world. A recent study found that the cost of creating one Bitcoin in Lebanon is about 783 times lower than it is in Italy, where it costs $208,560.
A research that was released on August 17 found that, based purely on the cost of household electricity, just 65 nations are profitable for lone Bitcoin miners. In comparison to Europe’s five, 34 of these are in Asia. But compared to the average cost of residential electricity globally, lone Bitcoin miners find themselves at a disadvantage:
“The average cost of household electricity for mining one bitcoin is $46,291.24, which is 35% more expensive than the daily average price of one bitcoin in July 2023 ($30,090.08).”
At $208,560 per Bitcoin, Italy was found to be the nation with the highest cost for household Bitcoin mining. According to this, mining one Bitcoin in Italy costs about eight times as much as it is worth at the time of writing. Austria came next with $184,352 and Belgium with $172,382 respectively. Individual miners in Lebanon can produce one Bitcoin for approximately $266 thanks to cheap household electricity costs. According to this information, mining a Bitcoin in Italy would cost about 783 times as much.
With a $532 production cost per Bitcoin, Iran came in second. Despite Iran legalising Bitcoin mining in 2019, the nation has repeatedly outlawed the technique due to the strain it places on electricity networks throughout the winter.
Changpeng “CZ” Zhao, the CEO of Binance, recently questioned his 8.6 million followers on X (previously Twitter) by posting a screenshot of this report’s statistics and asking why people in these nations with poor electricity wouldn’t mine Bitcoin. CZ is still doubtful, though, and thinks there may be further aspects to take into account. But he thought it was worthwhile to look into further:
“The report presumably didn’t take logistics and other aspects into account. But if the information is accurate, there appear to be some possible chances.
CZ acknowledged a user from X who said that many of these nations don’t have enough electricity to take full advantage of the low electricity prices. According to the X user, “Most of these countries are experiencing an electricity shortage and typically shut down their heavy industries in the summer or during peak hours.”