Italy Tops the List of Most Expensive Countries for Crypto Miners
A recent study by CoinGecko reveals that Italy is the most expensive nation for crypto miners, with the cost of electricity to produce one BTC reaching around $210,000. Other European countries like Austria, Belgium, Denmark, and Germany closely follow as the most unprofitable regions. However, bitcoin mining is only profitable in 62 out of the 147 nations analyzed by CoinGecko, and surprisingly, Lebanon is the cheapest destination for mining activities.
Europe’s High Energy Costs and Factors Influencing Bitcoin Miners
- The cost of electricity, quality of machinery, and mining difficulty are crucial factors for bitcoin miners.
- CoinGecko’s research shows that the average household electricity cost to mine one bitcoin is $46,291, almost double the current price of BTC.
- Italy tops the list with an electricity cost of $208,560, followed by several other European nations.
- The surge in wholesale electricity prices after the COVID-19 pandemic and the Russia-Ukraine conflict contribute to Europe’s high energy costs.
The Cheapest Countries for Bitcoin Mining
- There are significant differences in electricity costs between continents, with Europe averaging at $85,767 and Asia at slightly over $20,000.
- Lebanon is the cheapest country to mine bitcoin, costing only $266 per bitcoin. Iran, Syria, Ethiopia, and Sudan also make up the top 5 cheapest regions.
- Some countries with low electricity costs have imposed bans on cryptocurrency operations, like Iraq.
The United States and Energy Prices
While the USA falls somewhere in the middle of the list, it has higher electricity costs ($46,280) compared to neighboring countries such as Canada ($33,250) and Mexico ($26,340). However, energy prices vary within each state, with states like Colorado and Texas offering lower rates, attracting crypto mining companies like Riot Platforms.
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