Bitcoin miners around the world are experiencing significant differences in home electricity costs. A recent report by CoinGecko highlights the stark contrast in spending by individual Bitcoin miners around the world. Remarkably accordingly, mining a BTC in Lebanon is very cheap. It costs about 783 times less than in Italy. The report reveals important differences in the cost environment. Let’s look at the details.
Europe leads the list of unprofitable Bitcoin mining countries
CoinGecko’s report shows that Europe is home to nine of the ten least profitable countries for Bitcoin mining. On the other hand, he emphasizes that the main reason for this is high household electricity costs. Of the 65 countries where BTC mining alone is profitable based solely on household electricity costs, Asia has 34 and Europe only five.
However, independently operating Bitcoin miners have a challenge. Accordingly, the global average household is facing electricity costs that defy the norm. The report includes the following statements:
“The average household electricity cost for mining 1 BTC is $46,291.24. This figure is 35% higher than the average daily price of 1 BTC ($30,090.08) in July 2023.”
Italy tops the lists as the most expensive mining center
Italy is emerging as the most costly country for home Bitcoin mining, with a staggering $208,560 per Bitcoin. To put this in perspective, one Bitcoin mining in Italy is equivalent to about nine BTC at the time of writing.
Austria and Belgium rank second and third with costs of $184,352 and $172,382.
Lebanon’s extraordinary mining advantage
On the contrary, Lebanon’s household electricity prices present an attractive proposition for individual miners. It also allows them to generate a Bitcoin for only $266. This striking difference positions Lebanon as an ideal location for Bitcoin mining. On the other hand, it offers a cost that is 783 times cheaper than Italy’s cost of $208,560.
There is another example. Accordingly, Iran follows this country with a production cost of $532 per BTC. Iran legalized Bitcoin mining in 2019. However, the country has intermittently banned mining activities during the winter months due to strain on the power grid. In a previous report by Kriptokoin.com, it was emphasized that Iran seized approximately 150,000 crypto mining equipment.
Exploring the potential of low-cost Bitcoin mining countries
Binance CEO Changpeng Zhao “CZ” touched on this in an X post on August 19. He focused on the opportunities that countries with low electricity costs can offer for Bitcoin mining. CZ, who remains skeptical and admits that more research needs to be done, draws attention to one point. He points out that potential factors such as feasibility and logistics could play an important role in the mining environment in these countries.
https://twitter.com/cz_binance/status/1692807605599498358
An X user participating in the discussion provides important information. He notes that many of these low-cost countries are struggling with electricity shortages. On the other hand, he emphasizes that he generally restricts heavy industries during summer or peak hours.
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