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CoinGecko’s report on Bitcoin mining costs

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On August 17, CoinGecko published a report on the cost of electricity in the countries around the world required for Bitcoin mining. We have found some of the figures surprising: in several countries, it is possible to mine Bitcoin for less than $2,000 in electricity costs, while in others it is unprofitable even if Bitcoin reaches $100,000. Let’s dive into this report together.

 

World mining price map

The map below shows how much money you need to mine a single Bitcoin in terms of electricity costs. Notably, the report highlights that a solo miner would necessitate approximately 7 years and an average of 266,000 kilowatt-hours (kWh) of electricity to mine 1 BTC.

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Here are three more key takeaways:

📉 The cheapest place for mining 1 BTC is Lebanon, with an expense of $266. 

📈 On the contrary, Italy is the most expensive, demanding over $200,000 per coin. 

📊 The average global cost of mining Bitcoin is $46,291. However, considering such a disparity between maximum and minimum prices, this statistics shows little.

More details on CoinGecko’s research and methodology are here
 

Least profitable countries for Bitcoin mining

Below are the top-10 most unprofitable countries for mining, with nine of them being European nations.

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CoinGecko attributes the rise in electricity prices to COVID-19, the 2022 heat wave, and gas supply problems prompted by the geopolitical situation on the continent. 
 

Most profitable countries for Bitcoin mining

In contrast, the top-10 most profitable countries for mining look more diverse, spanning across Asia and Africa:

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CoinGecko does not explain why many countries on this list are not recognised as "mining hubs". Probably, miners are not attracted to these places due to the lack of transparent cryptocurrency regulation rules. 

Notably, Kyrgyzstan stands out on this list, as the imminent launch of hydroelectric power plant mining is expected. 

CZ, the head of the Binance exchange, has been puzzled by Bitcoin not being mined in the most profitable countries. The response suggested that electricity shortages and periodic blackouts during peak periods are to blame for this choice.

Moreover, next April heralds the halving of Bitcoin, which may be difficult for some miners.  Despite production costs remaining unchanged, rewards will be halved. If the bull run does not happen, not all miners will be able to withstand such pressure.
 

You might also like:

What is Bitcoin

Buy Bitcoin

Bitcoin July 2023 recap

Bitcoin price prediction for the end of 2023

Maria Kachura
Maria Kachura

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