CoinGecko’s analysis on August 17 revealed significant differences in electricity consumption for Bitcoin (BTC) mining worldwide, the largest cryptocurrency by market value. On average, it takes about 266,000 kilowatt-hours (kWh) of power to mine a Bitcoin as an independent miner. This process is equivalent to approximately seven years.
Is Mining Profitable?
According to Coingecko, a leading crypto data collector, the cost of mining 1 BTC is approximately $46,291, based on average household electricity rates. This value is 35% higher than the daily price of a single BTC, which was $30,090.08 in July 2023. However, these costs can vary depending on the country or region. While Asia stands out with the lowest average of $20,635.62, Europe has the highest average expenditure of $85,767.84.
The study suggests that mining a Bitcoin alone is only profitable in 65 countries, considering household electricity costs. These countries are primarily located in Asia and Africa, known for relatively cheaper electricity. The research also indicates that 9 countries have completely banned cryptocurrency activities, and 42 countries have implemented indirect regulations.
The following is a list of countries with the highest electricity costs for Bitcoin mining:
- Italy: $208,560.33
- Austria: $184,352.44
- Belgium: $172,381.50
- Denmark: $166,795.06
- Germany: $163,336.79
- Ireland: $159,612.50
- Lithuania: $152,163.92
- Netherlands: $137,798.79
- United Kingdom: $130,616.23
- Cayman Islands: $128,222.04
On the other hand, the countries with the lowest electricity costs for Bitcoin mining are:
- Lebanon: $266.02
- Iran: $532.04
- Syria: $1,330.10
- Ethiopia: $1,596.12
- Sudan: $2,128.17
- Libya: $2,660.21
- Kyrgyzstan: $2,660.21
- Angola: $3,724.29
- Zimbabwe: $3,990.31
- Bhutan: $4,256.33
CZ Binance’s Response
There is a person in the world of cryptocurrency who can reshape everything when he speaks. That person is none other than CZ, the CEO of Binance. Binance’s CEO, Changpeng Zhao (CZ), reacted to the list of countries with the lowest electricity costs, writing, “Why not?”
Finally, it is worth noting specific data points for a few countries. The electricity cost to mine a BTC is approximately $22,000 in Turkey. According to CoinGecko’s data, this cost is around $46,280 for the United States.
