Europe Dominates Least Profitable Bitcoin Mining Countries
As per the analysis, Europe is host to nine out of the 10 countries with the least profitability for Bitcoin mining, as determined by household electricity expenses.
A notable global disparity emerges in terms of household electricity costs for individual Bitcoin miners. The expenses vary significantly across different regions, impacting the profitability of mining. While producing one Bitcoin in Italy demands $208,560, the same process is approximately 783 times cheaper in Lebanon, according to a recent CoinGecko report.
The report, published on August 17, underlined that only 65 nations offer profitability for solo Bitcoin miners, strictly based on household electricity costs. Out of these, 34 countries are located in Asia, whereas Europe accounts for merely five.
However, solo Bitcoin miners find themselves at odds with the worldwide average of household electricity costs:
“The average household electricity cost to mine 1 Bitcoin is $46,291.24, which is 35% higher than the average daily price of 1 BTC in July 2023 ($30,090.08).“
The report singled out Italy as the most expensive country for household Bitcoin mining, demanding $208,560 per Bitcoin. At the time of publication, this indicates that the cost of mining a single Bitcoin in Italy equals the value of approximately eight Bitcoins.
This was followed by Austria at $184,352 and Belgium at $172,382, further emphasizing the financial challenges faced by individual miners in Europe.
The Least Profitable and Most Affordable Bitcoin Mining Countries
The list of the most unprofitable countries for mining 1 BTC is sourced from CoinGecko data. Contrastingly, Lebanon’s favorable household electricity costs enable individual miners to produce a single Bitcoin for a mere $266. This cost is remarkably 783 times cheaper than the expense incurred for mining in Italy.
Following closely is Iran, with a production cost of $532 per Bitcoin. Despite Iran legalizing Bitcoin mining in 2019, the country has intermittently imposed bans on legal operations, particularly during energy-demanding seasons like winter.
On January 4, Cointelegraph reported the seizure of around 150,000 units of crypto mining equipment by Iran’s Organization for Collection and Sale of State-Owned Property.
In a related development on August 19, Binance CEO Changpeng “CZ” Zhao shared the report’s data on his platform (previously Twitter), engaging his 8.6 million followers in a query regarding why individuals in these countries with inexpensive electricity wouldn’t venture into Bitcoin mining.
Why wouldn't they? 🤷♂️😂 pic.twitter.com/cD1TSgOZzx
— CZ 🔶 Binance (@cz_binance) August 19, 2023
Nonetheless, CZ still maintains a sense of doubt and is of the opinion that additional factors could come into play. However, he put forth the idea that delving deeper into the matter holds promise:
“It’s likely that the report overlooked considerations of feasibility and other logistical aspects. Nevertheless, if the data proves accurate, there certainly appear to be noteworthy potential prospects.”
CZ took note of feedback from a user identified as X, who elaborated on the point that a number of these nations lack adequate electrical infrastructure to capitalize on the advantages of cost-effective electricity.
“A significant portion of these countries grapple with electricity shortages, frequently resorting to shutting down energy-intensive sectors during the summer months or at times of peak demand,” according to the observations shared by user X.
