Crypto Mining! Where is the Best Place to Start Mining Bitcoin.

Cryptocurrency miners are considered among the primary motorists of the crypto market but the current market downturn has actually put the profitability of the once-lucrative business into question.

Falling crypto rates and rising electrical power costs around the world mean miners operate on really tight margins and some might not even pay at all, according to a report from 911 Metalurgist on mining costs.

The report estimates how costly it is to mine the top three most popular PoW cryptocurrencies– Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE).

The research thought about the average cost per kWh in every country in the world and after that compared it to the energy required to mine each of these tokens. Deducting the typical market price for the token left researchers with a rough quote regarding how rewarding mining is around the world

The differing expense of crypto mining around the world.

Bitcoin mining has been a highly contested subject recently, with many federal governments and environmental companies slamming its high energy requirements. And while most of the information shared by critics could be defined as misleading, there are nations on the planet where mining Bitcoin is both economically and energetically unfeasible.

According to research from 911 Metalurgist, mining 1 BTC in Venezuela costs over $246,500. The most recent market recession has actually pushed Bitcoin’s price down to around $20,000, making Venezuela the worst country to mine BTC. Mining ETH in the country is profitable, however with an approximated cost of around $1,000 and ETH’s cost now standing at just above $1,100, miners would simply have the ability to break even.

Small island nations whose lenient tax laws made them a popular destination for crypto companies aren’t that inviting to mining. Mining 1 BTC on the Solomon Islands currently costs around $142,500. Antigua and Barbuda, Micronesia, Kiribati, Marshall Islands, Maldives, Samoa, Vanuatu, Dominica, and Tonga all have exceptionally high electrical energy prices that render Bitcoin mining difficult. Mining a single Bitcoin in any one of these nations costs between $70,000 and $89,000.

Nations with more affordable and more plentiful electrical energy, however, make cryptocurrency mining an exceptionally profitable undertaking.

Kuwait is the most lucrative country to mine Bitcoin, with the report approximating it costs around $1,390. At the present market price of just over $20,000, this is a revenue of $18,610. In Algeria and Sudan, it costs in between $4,200 and $4,800, with both nations offering a profit of over $15,000.

Yemen, Ethiopia, and Kyrgyzstan require around $7,160 to mine a single Bitcoin while doing the exact same in Angola and Qatar will hold up miners $7,360.

As soon as accounting for over three-quarters of Bitcoin’s whole hash rate, China is no longer the mining hub it when was. The ban introduced by the nation’s reserve bank in 2021 has actually exiled all mining operations in the country.

While some transferred to surrounding country Kazakhstan to utilize the nation’s plentiful coal-powered electrical power, many were considering less popular locations with low-cost electrical energy. Some countries anticipated an influx of miners and were expedient in passing laws that prohibited mining prior to any significant operations were established. Iran, home to the 14th lowest electricity prices worldwide, imposed a momentary restriction on Bitcoin miners after an influx of farms triggered multiple cities to suffer rolling blackouts.

Kosovo, a Balkan state whose independence has been extremely objected to, supplied Bitcoin miners with the ideal mix of cheap electricity and political instability that led to it becoming a location for mining. Kosovo’s coal plants provide the 16th most affordable electrical energy in the world. Nevertheless, the continuous disagreement between Serbia and Kosovo about the sovereignty of the land led to suspicious agreements that left it to local governments to take in the expense of electrical energy for Kosovo’s northern part.

Essentially totally free electricity made Kosovo a particularly appealing destination for mining in the past a number of years. However, coal plant interruptions and the increasing cost of imported electrical power forced the disputed nation to introduce an indefinite ban on mining, according to Reuters. Mining 1 BTC in Kosovo would currently cost around $10,560, presenting a profit of over $9,500.

The great miner migration to the U.S.

Following the questionable mining ban in China, a substantial number of big mining operations sought refuge in the U.S. Looking for large land, good infrastructure, and low electricity prices, numerous miners relocated to Texas and Wyoming. The abundant power in both states indicates mining 1 BTC costs around $16,500, providing a profit of around $3,500 even with Bitcoin’s rate hovering around $20,000.

However, despite the growing variety of miners moving there, Texas does not offer the least expensive electrical energy in the U.S. Rather, the most inexpensive electricity can be found in Louisiana, where mining 1 BTC costs $14,995. Other Midwestern states like Arkansas, Wyoming, and Utah need around $16,500 to mine 1 BTC.

In spite of the cost of mining Bitcoin being roughly in line with the nationwide average, Georgia has actually supposedly become the main crypto mining hub in the U.S. Bloomberg reported earlier this year, mentioning cryptocurrency company Foundry, that miners in Georgia represented over 34% of the computing power in its swimming pool, which accounts for 17% of Bitcoin’s overall hash rate.

The outsized mining activity in the country is due to favorable policies that enabled mining business to acquire cheap solar and nuclear electricity from non-profit companies in the location at about half the price. Mining 1 BTC with power from Georgia’s grid would cost just over $13,000.