The Cost of Mining 1 Bitcoin: Regional Disparities and Household Electricity Costs

Mining 1 Bitcoin: The Cost and Challenges

In this study, researchers analyze the cost and challenges associated with solo mining 1 bitcoin. Here are the key points:

Solo mining 1 bitcoin requires an average of 266,000 kWh of electricity and takes around 7 years to complete.
Monthly electricity consumption for solo mining is approximately 143 kWh.
The average cost of household electricity needed to mine 1 bitcoin is $46,291.24.
Asia is the only region where household electricity costs make mining profitable for solo miners.
Lebanon has the lowest electricity cost for mining at $266.20, while Japan has the highest at $64,111.02.

Europe’s High Electricity Costs for Mining

Europe has the highest average cost of household electricity for mining. Here are the key points:

Only 65 countries present profitability for solo mining based on household electricity costs alone.
Europe has the highest average cost of household electricity for mining at $85,767.84.
Italy is the most unprofitable country for solo miners, with the electricity cost to mint 1 BTC reaching $208,560.33.
Increase in household power rates in Europe is due to factors like wholesale price spikes, growing demand, and geopolitical issues.

Comparing Bitcoin Mining Electricity Consumption

Bitcoin mining’s electricity consumption is comparable to other household appliances. Here are the key points:

Mining 1 BTC requires 4.6 kWh, similar to an electric kettle (3.5 kWh) or a clothes dryer (5 kWh).
Monthly electricity required to mint a single bitcoin is approximately one-sixth of a typical U.S. household’s consumption in 2021.

Hot Take:

The cost of mining 1 bitcoin varies significantly depending on the region and electricity costs. Solo mining is only profitable in certain countries, with Asia being the most favorable. Europe faces challenges with high electricity costs, making it unprofitable for solo miners. However, the electricity consumption of bitcoin mining is not as excessive as one might think when compared to other household appliances. Overall, the study highlights the importance of considering electricity costs and regional factors when engaging in bitcoin mining.