Bitcoin Mining: Global Electricity Dynamics

A notable and fascinating global discrepancy emerges when delving into the realm of household electricity expenses for individual Bitcoin miners. The variations are not only remarkable but also shed light on the intricate economic landscapes these miners navigate. An intriguing comparative case in point is the production cost of a solitary Bitcoin in Italy, a staggering $208,560, which starkly contrasts with Lebanon's remarkably economical rate, clocking in at approximately 783 times cheaper, as unveiled in a recent comprehensive analysis.

Hot off the press on August 17th, the CoinGecko report takes us on a journey through the profitability corridors of solo Bitcoin miners scattered across the world map. What surfaces is a realization that a mere 65 countries offer a hospitable climate for these miners, their viability hinging profoundly on the intricate calculus of household electricity outlays. Among this exclusive circle, Asia claims the lion's share, with 34 countries making the cut, while Europe's representation is modest, limited to a mere handful.

However, it's worth noting that the solo Bitcoin miners find themselves pitted against a global backdrop of average household electricity costs that adds an intriguing layer to this narrative:

"Investigations reveal that the average expense of household electricity to mine a single Bitcoin stands at a hefty $46,291.24. This figure notably surpasses the average daily valuation of 1 BTC recorded in the heat of July 2023, marked at a modest $30,090.08."

Unearthing further revelations, the report pinpoints Italy as the unrivaled leader in the category of most expensive terrain for household Bitcoin mining, ringing in at a monumental $208,560 for each precious Bitcoin. The implication is staggering; the expense of excavating one Bitcoin in Italy parallels the cumulative worth of approximately eight Bitcoins.

On the heels of Italy's exorbitance, Austria takes the stage at $184,352, followed closely by Belgium with costs pegged at $172,382.

In a noteworthy contrast, Lebanon emerges as the dark horse, where electricity tariffs open the gateway for individual miners to mint a single Bitcoin for a paltry $266. This singular statistic makes it a jaw-dropping 783 times more pocket-friendly than its Italian counterpart, raising eyebrows and fueling curiosity.

Iran, however, strides onto the scene with a production expenditure of $532 per Bitcoin. A fascinating aside is Iran's oscillation between the acceptance and restriction of Bitcoin mining since its legalization in 2019. This seesaw is attributed to the concerns of straining energy grids, particularly during the biting winters.

Casting a glance back in time, it was reported on January 4th that Iran's Organization for the Collection and Sale of State-Owned Property laid claim to approximately 150,000 units of crypto mining equipment, spotlighting the volatility and regulatory nuances in the field.

In a more contemporary development, August 19th saw Binance's CEO, Changpeng "CZ" Zhao, sharing a snippet of this very report's data on the platform formerly known as Twitter, engaging his vast following of 8.6 million in a contemplative conversation about the untapped potential in nations boasting low-cost electricity. While CZ's skepticism remains palpable, he acknowledges the potential factors yet to be dissected. Nevertheless, he champions the notion of a deeper exploration:

Why wouldn't they? ????‍♂️???? pic.twitter.com/cD1TSgOZzx

— CZ ???? Binance (@cz_binance) August 19, 2023

"While the current report might have glossed over certain feasibility and logistical facets, the realm of opportunities certainly warrants a more thorough investigation."

CZ keenly heeds the insights of an X user who posits that the major roadblock for many of these nations lies in their insufficient electricity infrastructure, hampering their ability to harness the allure of reduced electricity overheads.

"Considering the context of these countries' chronic electricity shortages, often compounded by the seasonal shutdowns of energy-intensive industries during summer or peak usage times," astutely noted the observant X user.

Countries with the least favorable returns for mining 1 BTC. Information sourced from CoinGecko