Where you live in the world affects how profitable your Bitcoin mining operation is, according to an analysis of worldwide electric prices by lighting company Elite Fixtures. Bitcoinist reviewed the data and mapped the energy costs for mining 1 BTC across the globe.
Electricity = Bitcoin
Energy prices around the world vary depending on a range of factors, including government subsidies and access to natural resources. These same factors impact how much it costs to run the energy-demanding computers known as Bitcoin miners, which crack highly complex math problems to earn Bitcoin.
One of the most efficient miners, the Bitmain Antminer S9, drains 1350 Watts while working. That’s the same amount of electricity a blow dryer on a max setting can use up.
With an average of $12,203 in electricity costs per Bitcoin, the island-dotted region of Oceania is the most expensive area on the globe for mining, followed by South America at $7,150, Europe at $6,695, Asia at $6,378, the Middle East at $6,249, and North America at $5,456. Africa is the cheapest region for mining, costing an average of $4,626 in electricity per BTC.
The average electrical cost to mine 1 bitcoin across all the nations is $7,295. Electricity costs in Canada and the United States both fell more than $2,000 below the average. And with 1 BTC earning more than $10,000 in today’s market, high electricity bills can justify the payoff.
It’s important to note that the study only surveyed 111 of the 195 nations on Earth. The uncolored nations on the map represent the countries that weren’t represented in the study. (Click the map to enlarge.)
The country with the highest energy costs for Bitcoin mining is South Korea at $26,170 per BTC. Bloomberg reported last year that soaring electricity prices in the country caused by tariffs are leaving many households paying more than factories for energy.
The cheapest country for mining is Venezuela at just $531 per BTC. The socialist South American nation was the only country to land in the triple-digits, in part due to its heavily subsidized electricity prices.
Miners to Get Cheap Electricity?
The energy prices involved in mining Bitcoin have always been an obstacle. Some miners are cutting costs by going green with renewable tech like solar panels. Moonlite.io is one company looking to launch a 100% renewable mining operation. In addition, the New York Power Authority CEO has openly spoken about providing cheaper electricity for Bitcoin mining.
What do you think about the impact of varying global electricity costs on Bitcoin mining? Let us know in the comments below!
Images courtesy of Dieter Holger/Bitcoinist