Avg Cost of Bitcoin Mining is 35% More Than BTC Price

Bitcoin (BTC) mining is one of the sectors in the crypto space to be surrounded by controversies and concerns due to different factors. The increased competition in the space resulted in the cost of mining cryptocurrency. Sometimes, the amount even goes to absurd levels. For instance, a recent report suggests that in Italy, a Bitcoin miner would need to spend over $208K to mine a BTC.

Prominent cryptocurrency insights provider platform CoinGecko brought a report on ‘Household Electricity Cost to Mine 1 Bitcoin at Home.’ The report published on August 17th, 2023 reveals the most profitable and unprofitable countries around the world in mining BTC. Out of many crucial factors, the cost of electricity in the region played an important role to figure out the exact numbers.

In terms of continents, Asian countries are way more profitable than their European counterparts given the electricity prices. The report considered the possibility for a solo miner to attain profitability as a base for comparison.

Italy and Lebanon has Bitcoin mining Cost Difference of 783 Times

According to the CoinGecko report, Italy tops the list of most unprofitable countries in terms of Bitcoin mining. The cost of mining a BTC in the country could cost a solo miner approx $208.56K. The cost is equivalent to about eight BTC given the current trading price at around $26K.

Austria follows with $184.35K, Belgium $172.38K, Denmark $166.79K, and Germany $163.33K to be spent for mining a BTC.

On the flip side, Lebanon is the most profitable country in the world considering that a solo miner in the region can mine a BTC after spending $266 worth of electricity. It would cost $532 in Iran, $1330 in Syria, $1596 in Ethiopia, and $2128 in Sudan to achieve the same goal.

The difference in electricity consumption cost between Italy and Lebanon is 783 times.

The average household cost of electricity required to produce 1 BTC stands at $45,291. The cost is 35% more than the Bitcoin price of $30,000 in July 2023.

Asia is Suitable Than Europe for Bitcoin Mining

The disparity between the cost is not limited to the countries only as it can be found among the continents too. The report found that Europe has the highest average cost of mining a Bitcoin which is more than $85.7K while it will take $20.6K in Asia. Clearly, a solo miner in the Asian region is likely to generate more profit rather than in Europe.

The stark difference between the cost of Bitcoin mining is correlated to the price of electricity in the region. European countries already had higher prices that increased due to increased demand during the COVID-19 pandemic. Then, the expected recovery phase brought the war in the regions between Russia and Ukraine, and the cost of energy shot up since the energy supply was hampered.