Costly Italy vs. Cheap Lebanon
A recent report by CoinGecko has revealed a significant contrast in household electricity expenses for individual Bitcoin miners around the world. The report shows that while it costs approximately $208,500 to produce one Bitcoin in Italy, in Lebanon, it's roughly 783 times cheaper.
Profitability for Solo Miners
The report also found that only 65 countries are profitable for solo Bitcoin miners based on household electricity costs. Out of these, 34 are in Asia, while Europe only has five. This highlights the differences in mining profitability across regions.
The Worldwide Average
Although solo Bitcoin miners face varying costs, the report states that the average household electricity cost to mine one Bitcoin is $46,291.24. This is 35% higher than the average daily price of 1 BTC in July 2023, which was $30,090.08. So, while Bitcoin mining can be profitable in some countries, it also comes with significant electricity expenses.
The Costliest and the Cheapest
According to the report, Italy is the costliest country for household Bitcoin production, with a cost of $208,560.33 per Bitcoin. This is followed by Austria at $184,352.44 and Belgium at $172,381.50. On the other hand, Lebanon's household electricity rates make it incredibly cheap for individual miners, allowing them to generate one Bitcoin for just $266.02. This means mining a Bitcoin in Lebanon is approximately 783 times cheaper than in Italy.
The Case of Iran
Iran, which follows Lebanon in terms of low-cost Bitcoin mining, has a production cost of $532.04 per Bitcoin. However, despite legalizing Bitcoin mining in 2019, the country has banned it on several occasions due to concerns about stress on energy grids during winter.
Exploring the Potential Opportunities
After the report's data was shared on X (formerly Twitter) by Binance CEO Changpeng "CZ" Zhao, he questioned his 8.6 million followers why individuals in these countries with low electricity costs wouldn't mine Bitcoin. CZ remains skeptical and suggests there might be more factors to consider, but he believes it's worth exploring the potential opportunities.
One user on X pointed out that many of these countries lack sufficient electricity to make the most of the cheap electricity costs, as they often face shortages and may have to turn off heavy industries during peak hours or in the summer.
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