Asia Dominates Bitcoin Mining Profits with Lower Electricity Costs
In a groundbreaking study, it has been revealed that the Asian region holds an advantage in Bitcoin mining costs for individual miners, outshining other continents with its lower electricity costs. While Europe struggles due to surging energy expenses linked to factors such as the ongoing Covid crisis, intense heat waves, and geopolitical unrest in Ukraine.
Unlocking the Numbers: 266K kWh Electricity and 7 Long Years
Imagine mining a solitary bitcoin, an endeavor demanding around 266,000 kilowatt-hours (kWh) of electricity. This ambitious process extends for approximately seven years, necessitating a consistent monthly energy consumption of roughly 143 kWh.
These insightful calculations were made by researchers who recognized that the era of effortless Bitcoin (BTC) mining, powered by mere desktop computers, has faded away. Today, they've delved into global household electricity costs to spotlight the prospects for decentralized network miners.
The Cost Equation: Asia's Advantage Amidst Regional Disparities
Coingecko, a prominent crypto asset aggregation portal, has unveiled a comprehensive study that uncovers the cost of household electricity essential for minting a single bitcoin at an impressive USD 46,291.24. Intriguingly, this figure surpasses the average daily price of BTC in July 2023, valued at USD 30,090.08.
Delving deeper, the research spotlights the significant regional variations in household electricity costs, where Asia emerges as the hub of mining profitability for individual miners. With a remarkably affordable average cost of USD 20,635.62 per bitcoin, Asia proves to be the exclusive domain where home electricity expenses align favorably with mining returns.
Regional Richness: Diverse Paths to Mining Prosperity
The study also highlights the significant differences within the continent itself. Countries like Lebanon have the lowest electricity cost at a mere USD 266.20, while it is the highest in Japan at USD 64,111.02 per bitcoin. Remarkably, half of the top 10 countries enjoying the most lucrative Bitcoin mining conditions are nestled within the vibrant Asian market.
Europe's Hurdle: Surging Household Electricity Costs
The mining profitability exhibits a contrasting scenario in Europe, where only 65 countries show signs of solo mining profitability based on household electricity costs. With an average cost of USD 85,767.84, Europe grapples with the most expensive household electricity costs, rendering Bitcoin mining largely challenging. Notably, nine out of the 10 least profitable solo mining nations belong to this region. Among these, Italy stands out with the electricity cost of minting one BTC, at an astounding USD 208,560.33.
A Confluence of Forces: Factors Behind the Numbers
The surge in household electricity costs across Europe is the culmination of multiple indicators. Factors such as the disruptive impact of the Covid-19 pandemic, escalating energy demand, sweltering heat waves, and Russia's incursion into Ukraine, impacting natural gas deliveries, have collectively contributed to the rising costs.
Drawing Parallels: Bitcoin Mining and Household Power Consumption
It's intriguing to note that the electricity consumption of mining one BTC, standing at 4.6 kWh, shares surprising similarities with other household appliances. For instance, an electric kettle utilizes 3.5 kWh, while a clothes dryer consumes an average of 5 kWh. Impressively, the monthly electricity required to mint a solitary bitcoin barely exceeds one-sixth of the energy consumed by an average American household in 2021.
Share Your Insights on Coingecko's Revelations
What is your take on the findings of the Coingecko study? Please share your thoughts and opinions in the comments section below.
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