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The Asian region, despite substantial differences in regulations and electric charges, has the lowest mean expense for individual bitcoin miners, as demonstrated by new research findings. In contrast, across Europe, factors such as Covid-induced energy price spikes, heatwaves, and the Ukrainian conflict have made bitcoin mining predominantly non-viable in terms of profit.
Cost of Mining a Single Bitcoin: $266 in Lebanon, Over $208,000 for an Italian Miner
A solitary miner would necessitate a mean consumption of 266,000 kilowatt-hours (kWh) of power to produce one bitcoin, a process expected to last roughly seven years, with a monthly electricity requirement around 143 kWh, as calculated by researchers.
Acknowledging that the era when bitcoin (BTC) could be generated with a minimal amount of energy and basic desktop equipment is over, the study investigates domestic electricity prices worldwide to reveal possibilities for individual miners within a decentralized framework.
The crypto asset aggregation platform Coingecko conducted the study, determining that the average household electricity cost to mine a single bitcoin amounts to $46,291.24, 35% above BTC’s average price in July 2023, which was $30,090.08.
However, the disparity in household electricity expenses globally is considerable. Asia emerges as the only region where average household electricity costs make mining a viable pursuit for an individual miner, with the average expense per bitcoin at $20,635.62, the study’s authors observe.
The wide variation between Asian countries is noted, with Lebanon boasting the lowest electricity cost of $266.20, while Japan’s is the highest, costing $64,111.02. Even so, five of the top ten most profitable countries for bitcoin mining are in Asia.
Europe: The Region with the Greatest Average Household Electricity Expenditure for Mining
Based solely on household electricity costs, 65 countries presently demonstrate potential profitability for individual mining. Merely five of these are European, where the highest mean domestic electricity cost is $85,767.84. Nine of the top ten countries with the least profitability for individual miners are in this region, including Italy, where mining a bitcoin would cost $208,560.33.
Various elements have led to the escalation of household energy costs in Europe, such as the increase in wholesale electricity rates during the Covid-19 crisis, elevated demand, heatwaves, and disruptions in natural gas deliveries following Russia’s invasion of Ukraine, affecting numerous EU nations.
Additionally, researchers highlight that the power consumed per hour to mine 1 BTC, 4.6 kWh, is not as divergent as one might assume compared to other domestic devices like an electric kettle at 3.5 kWh, or a clothes dryer averaging 5 kWh. Moreover, the monthly energy needed to generate a single bitcoin is approximately one-sixth of the average U.S. household’s consumption in 2021.
The findings of the Coingecko study illustrate a complex and varied landscape for Bitcoin mining around the world, influenced by a myriad of factors. They shed light on the economic dynamics, technological shifts, and global events shaping the current state of the industry. The implications of these insights on future policies, investments, and technological advancements in the field of cryptocurrency mining might be subjects of further exploration and debate in the academic and business communities.
Frequently Asked Questions (FAQs) about fokus keyword: Bitcoin mining
What region has the lowest average cost for individual bitcoin miners according to the study?
The Asian region has the lowest mean expense for individual bitcoin miners, making it the most profitable area for mining based on household electricity costs.
How have factors like Covid and the Ukraine war impacted bitcoin mining in Europe?
These factors, along with heatwaves and rising demand, have led to a spike in energy prices, making bitcoin mining largely unprofitable throughout Europe.
What is the average household electricity cost needed to mine 1 bitcoin as found by the Coingecko study?
The average cost of the household electricity needed to mine 1 bitcoin is $46,291.24, according to the study produced by the crypto asset aggregation portal Coingecko.
How does the energy consumption of bitcoin mining compare to other household appliances?
The hourly amount of electricity used in the mining of 1 BTC, 4.6 kWh, is comparable to the consumption of other household appliances such as an electric kettle, with 3.5 kWh, or a clothes dryer that burns an average of 5 kWh.
In which region are nine of the top ten most unprofitable countries for solo miners located?
Nine of the top ten most unprofitable countries for solo miners are in Europe, where factors like the Covid-19 pandemic and Russia’s invasion of Ukraine have increased household power rates.
What is the significance of the regional differences in household electricity costs for bitcoin mining?
The regional differences highlight the significant disparity in profitability for solo miners across the world, with Asia standing as the sole profitable region, despite varying costs between countries within the region.
More about fokus keyword: Bitcoin mining
- Bitcoin Mining and Electricity Costs Worldwide
- The Impact of Covid-19 on Energy Prices
- The Ukraine War and Europe’s Energy Supply