- According to a new report from Coinbase, mining Bitcoin can be very costly. But it differs in some countries.
- The cost of mining Bitcoin is higher in Europe and America. However, it is significantly lower in Africa and Asia.
Bitcoin mining is the process of validating Bitcoin transactions to earn rewards. However, the price of mining Bitcoin mostly depends on energy costs. Moreover, the cost of energy varies in different countries. CoinGecko released a new report explaining how much it costs to mine 1 Bitcoin in different countries and continents. Note that this report only applies to solo Bitcoin miners.
America and Europe Has the Highest Cost of Bitcoin Mining
- CoinGecko made their assessment using the cost of electricity in each household around America and Europe. In other words, the calculations were made using how much electricity it costs for someone to mine 1 Bitcoin.
- Apparently, the cost of mining Bitcoin in many countries is more than 35% higher than the price of Bitcoin. At the time of writing, Bitcoin is within the $26k range. In the Americas, the average cost of mining one Bitcoin is more than $35,000. Moreover, in the official figures, it costs about $26.34k to mine Bitcoin in Mexico. Then for Canada, it costs about $33.25k to one Bitcoin mining. The United States has the highest cost in North America, a whopping $46.26k for 1 Bitcoin mining.
- In South America, the lowest price of mining 1 Bitcoin is in Cuba. It cost less than $8k over there. Then the highest goes to Uruguay, where it costs a whopping $67.30k to mine 1 Bitcoin.
- But it even gets worse when you move to Europe. The average cost of household electricity is estimated at $85,767.84. And to engage in Bitcoin mining and produce one BTC, the price varies. Nevertheless, it is significantly higher than what you get in America, Asia, or Africa. You will find the highest cost of mining one Bitcoin in Europe. It is actually in Italy, where you will spend up to $208.56k in electricity costs.
Bitcoin Mining Costs Significantly Lower in Asia and Africa
- The research also shows that Asia and Africa are one of the countries where Bitcoin mining is significantly lower. In fact, you will find the lowest cost of mining Bitcoin is found in Lebanon, Asia. Here to mine one Bitcoin, you only need to spend around $260 to mine one Bitcoin. That’s how profitable it is to mine Bitcoin in this country.
- For Africa, Bitcoin mining is also cheap, although it might be costlier in some areas. However, the average cost of mining 1 Bitcoin here is affordable. Egypt has one of the lowest Bitcoin mining price in Africa at around $7.18k.
Top Countries With the Lowest Bitcoin Mining Costs
- CoinGecko, in their report, also released the list of countries with the lowest cost in mining Bitcoin. However, the list showed that a large percentage came from Africa and Asia.
- In fact, only one or two countries from Europe made the list. The countries are Lebanon, Iran, Syria, Ethiopia, Sudan, Libya, Kyrgyzstan, Angola, Zimbabwe, and Bhutan.
Conclusion
Bitcoin mining is the process where crypto enthusiasts can earn rewards whenever they validate transactions on the blockchain. Generally, it helps them get BTC as a reward. However, the cost of mining differs in many countries as a solo miner. According to CoinGecko, it is less costly to mine Bitcoin in Africa and Asia than in Europe and the Americas.
