Bitcoin mining costs vary significantly from country to country, as highlighted in a recent research study conducted by NFT Evening. The study delves into the average costs of mining 1 Bitcoin in different countries around the world, shedding light on the profitability of mining in each region.
Among the countries with the most affordable mining costs is Russia, where the average cost of mining 1 Bitcoin is approximately $39,700. Interestingly, the countries with the lowest mining costs are often those rich in fossil fuels such as oil and natural gas. For instance, Libya boasts an average extraction cost of $5,300 per Bitcoin, while Nigeria and Iran follow closely with costs of $9,200 and $1,300 respectively.
Iran’s exceptionally low mining cost presents a unique challenge, as the country has suspended crypto mining to prevent energy diversion from civilian use. This decision underscores the delicate balance between mining profitability and energy allocation in resource-rich nations. Other countries with notably low mining costs include Ethiopia, Sudan, Syria, Cuba, Angola, Kyrgyzstan, and Bhutan, where the state itself engages in Bitcoin mining activities.
Moving to the Americas, only five countries have average mining costs below $50,000 per Bitcoin. The United States, despite its high hashrate, faces domestic extraction costs exceeding $100,000, making industrial mining more viable than home-based operations. Regional disparities in mining costs are evident within the US, with states like Texas offering more favorable conditions for Bitcoin mining.
In Asia, China reclaims its position as a major player in Bitcoin mining, with an average domestic cost of around $50,000 per Bitcoin. Kazakhstan, Malaysia, Laos, and Myanmar also emerge as cost-effective mining locations in the region. Africa presents a mix of countries with low domestic electricity costs but limited mining activity, underscoring the influence of energy consumption on mining economics.
Europe and Oceania exhibit significant variations in mining costs, with Ireland leading the pack with a staggering cost of over $320,000 per Bitcoin. Other European countries like Belgium, Great Britain, Germany, Denmark, Switzerland, and the Czech Republic, along with Caribbean nations like the Bahamas and Cayman Islands, also face high mining costs. In contrast, Eastern European countries like Ukraine, Belarus, and Turkey offer more affordable mining options.
Overall, the global landscape of Bitcoin mining is shaped by factors such as fossil fuel reserves, energy consumption patterns, and regional economic dynamics. As countries navigate the complexities of cryptocurrency mining, balancing profitability with sustainable energy practices remains a key challenge in the evolving digital economy.