The cost of electricity for Bitcoin mining varied widely among nations, as shown in a recent report by Coingecko.
In terms of cost, Italy tops the list, with 1 Bitcoin mining costing well over $200,000. However, there are a few locations where engaging in this endeavor is quite inexpensive, although fraught with regulatory hazards and a poor quality of life.
Renewable energy solutions are becoming more important for European mines to regain global competitiveness and prevent closure.
Bitcoin mining has always been a risky business, with outcomes influenced by factors including the price of Bitcoin, the cost of electricity and mining gear, and the complexity of the Bitcoin network.
To be successful in this field, you need to know more than just how the decentralized protocol works; you also need to know how much money you’ll need to put up front for the inevitable months when the market is down and your revenue is less than your expenditures.
Since the cost of power is a major component in deciding a mining company’s profitability, the better-organized ones generally try to relocate their machinery to nations with lower electricity rates.
Coingecko’s recent analysis indicates that the cost of power for mining 1 BTC by individual miners is highest in Italy, at a whopping $208,560.
Taking into account the current value of cryptocurrencies, this implies that the cost of power alone would amount to $8 for every Bitcoin generated.
Overall, the cost of electricity in Europe is far more than the value of the cryptocurrency being mined, averaging about $85,700 per year.
There is a cost of $163,330 in Germany, $159,610 in Ireland, and $130,620 in the United Kingdom. In order to be successful in this industry, European miners must find ways to use alternative energy sources.
It’s no secret that numerous businesses in northern European nations are engaged in Bitcoin mining utilizing only renewable energy sources like wind, solar, and hydropower rather than fossil fuels.
CoinGecko claims that there are places with considerably more cheap and sustainable energy prices for Bitcoin mining.
Using data from December 2022 and 8 distinct mining methods, we can determine that the cheapest country to mine Bitcoin is Lebanon, where costs are calculated in USD per kilowatt hour.
One coin of digital gold may be mined with an average of $260 in power in the West Asian nation, 783 times cheaper than in Italy.
