CoinGecko’s recent mining report calculated household electricity prices in various countries and listed the ten countries with the lowest and highest mining costs. Changpeng Zhao, the founder of Binance, also quoted the report data and asked: "Why don't these countries with low electricity prices do mining?" But obviously this report did not assess the reliability of electricity in these countries.
How much does electricity cost to mine one Bitcoin?
Bitcoin mining activities have been very different after many years. With the participation of mining companies and institutions, special mining machines and joining mining pools have become standard equipment. With the difficulty of mining and power consumption increasing significantly, mining Mine accessibility is much less than it was in earlier times.
The report calculated that the average household electricity price to mine one Bitcoin is approximately $46,291.24, which varies greatly among countries.
Among them, the average household electricity cost in Europe is the highest, about US$85,767.84. In comparison, the cost of electricity in Asia and Africa is generally lower, with an average of only US$20,635.62 in Asia.
Countries with the lowest mining costs
The report lists the 10 countries with the lowest mining costs, mainly located in Asia and Africa.
However, the report also mentioned that although low electricity costs are expected to bring profits, some countries may experience power outages under high power consumption conditions, especially in winter and summer, as is the case in Iran.
The list is as follows:
Country Price of electricity to mine one Bitcoin (USD) Lebanon 266.02 Iran 532.04 Syria 1330.1 Ethiopia 1596.12 Sudan 2128.17 Libya 2660.21 Kyrgyzstan 2660.21 Angola 3724.29 Zimbabwe 3990.31 Bhutan 4256.33
Countries with the highest mining costs
As emphasized at the beginning of the report, Europe is the country with the highest electricity prices, and 9 out of 10 on the list are European countries. The reasons also include the suspension of natural gas supply in some EU countries due to the war between Ukraine and Russia. The list is as follows:
Country Price of electricity to mine one Bitcoin (USD) Italy 208,560.33 Austria 184,352.44 Belgium 172,381.50 Denmark 166,795.06 Germany 163,336.79 Ireland 159,612.50 Lithuania 152,163.92 Netherlands 137,798.79 United Kingdom 1 30,616.23 Cayman Islands 128,222.04
Changpeng Zhao: Why don’t countries with low electricity prices do mining?
CZ also recently cited data from the report, wondering why people living in countries with low electricity prices do not participate in mining activities.
However, the encryption community immediately pointed out the reasons. Countries with low electricity prices generally have the following problems:
geopolitical tensions
There are civil unrest and conflicts
On the contrary, we are more likely to face power shortages in summer and winter.
Why wouldn't they? pic.twitter.com/cD1TSgOZzx
— CZ Binance (@cz_binance) August 19, 2023
Twitter user CryptoYoncé pointed out that the data apparently does not take into account the availability of electricity, otherwise many African countries would not be on the list at all.
Some communities even joked that Lebanon, which ranked first, had no electricity at all (the conflict between the country and Israel has intensified).
In this article, CoinGecko lists the top ten countries with the lowest mining costs. Changpeng Zhao asked: Why don’t they mine? First appeared in Chain News ABMedia.