Italy has been identified as the most expensive country for Bitcoin mining, requiring approximately $210,000 in electricity costs to produce just one BTC, according to research conducted by CoinGecko. Other European countries such as Austria, Belgium, Denmark, and Germany also rank among the most unprofitable regions for miners. Surprisingly, Lebanon emerges as the cheapest destination for crypto mining activities, despite its economic challenges.
Bitcoin miners consider several factors when deciding to join the ecosystem, including the cost of electricity, the quality of machinery, and the network’s mining difficulty. CoinGecko’s data shows that the average household electricity cost to produce one bitcoin is $46,291, almost twice the current price of the digital asset. However, some regions have significantly higher mining rates. Italy tops the list with an electricity cost of $208,560 per bitcoin, followed by several other European nations including Austria, Belgium, Germany, the Netherlands, and the UK.
CoinGecko attributes the high energy costs in Europe to various reasons, including the surge in wholesale electricity prices following the COVID-19 pandemic and the military conflict between Russia and Ukraine. On the other hand, there are considerable differences in electricity costs between continents. In Europe, the average household energy price for mining one BTC is estimated at $85,767, while in Asia, it is slightly higher than $20,000.
Lebanon stands out as an attractive choice for crypto miners, with an electricity cost of only $266 to produce a single bitcoin. Other affordable regions include Iran, Syria, Ethiopia, and Sudan. However, some countries with low electricity costs have imposed bans on cryptocurrency operations. Iraq, for example, requires less than $4,000 to mine one BTC but has prohibited the use of cryptocurrencies since 2017.
In the United States, the world’s largest economy, electricity costs for mining Bitcoin are relatively high, with an average of $46,280. This is more expensive compared to neighboring countries such as Canada ($33,250) and Mexico ($26,340). Interestingly, energy prices vary across different states in the US, making some regions more attractive for crypto mining. For instance, the leading Bitcoin mining company Riot Platforms has focused its operations in Colorado and Texas, where energy costs are lower.
Overall, the research conducted by CoinGecko highlights the significant variations in electricity costs for Bitcoin mining across different countries and continents. While some regions prove to be unprofitable for miners due to high energy expenses, others offer more favorable conditions, making them attractive destinations for crypto mining activities.