Over the past several years, price of cryptocurrencies have been on a rise. Who could have ever thought in 2010 that Bitcoin, one day, would reach $20,000. Not even 2010 - it was perhaps impossible to think so till late 2017. However, now that we know the potential of Bitcoin, it is all set to give Bitcoin mining a major boost as it will draw many new users towards mining.
Before we head any further - here’s a quick look at what Bitcoin mining is. Bitcoin mining is the process by which new Bitcoins are generated. In the most basic terms, mining involves the use of high amounts of electricity and processing power to solve complex equations which help in verifying transactions over the Bitcoin blockchain. In exchange for these mining operations, miners are rewarded with Bitcoin as block rewards.
Bitcoin mining involves two types costs. Here’s a look at all that’s considered:
- Cost of the equipment used for mining
- Cost of the electricity consumed
Electricity is one of the biggest costs associated with Bitcoin Mining. Let us take a look at how much does it cost to mine 1 Bitcoin around the world:
Electricity Cost of Mining one Bitcoin Around the World:
Here’s a look at the top 5 most expensive and the top 5 least expensive nations to mine Bitcoins when it comes to electricity costs:
5 of The Most Expensive Countries to Mine Bitcoin
- Cook Islands: $15,861: Cook islands are a group of 15 islands near New Zealand which are a self-governing nation. For those planning to mine for Bitcoins in Cook Islands, it’ll cost $15,861 in electricity prices to mine just one Bitcoin!
- Solomon Islands: $16,209: It probably isn’t the best idea to mine for Bitcoins on islands, it seems. While mining for a single Bitcoin in the Cook island costs you over $15,000 - Solomon Islands near Papua New Guinea are even more expensive as it costs electricity worth $16,209 to mine for a single Bitcoin there!
- Bahrain: $16,773: Mining for Bitcoins in the Kingdom of Bahrain in the Persian Gulf could cost you as much as $16,773 just in electricity charges! Considering that some Islamic nations are proposing to ban Bitcoin trading, it would probably be a bad decision to mine here anyway.
- Niue: $17,566: Another island nation located near Cook Islands, Niue, with a population of just 1600 people (2016 census) is one of the smallest nations in the world. However, while it might be one of the smallest, it is one of the most expensive names when it comes to mining Bitcoins with a whopping $17,566 per Bitcoin in just electricity charges.
- South Korea: $26,170: Going by how popular cryptocurrency mining is in South Korea, this is a rather shocking statistic. The Asian nation is one of the most active names in the world when it comes to cryptocurrency trading. To mine one Bitcoin in South Korea, you’d probably have to spend 3 by current rates. It costs over $26,000 in electricity charges to mine one Bitcoin in South Korea!
5 Cheapest Countries for Mining Bitcoins
- Belarus: $2177: Eastern European nation of Belarus is known primarily for its art galleries, theatre and cultural aspects. However, the nation is also one of the cheapest places where you could mine a Bitcoin! It costs just $2177 in electricity to mine one Bitcoin in Belarus.
- Myanmar: $1983: South East Asian nation of Myanmar has been in the news for various controversies of late. However, one of the biggest benefits of being here is the fact that you can mine a Bitcoin for just $1983 in electricity charges in Myanmar!
- Ukraine: $1852: A country which has been adapting really well to cryptocurrencies, Ukraine is also a place where mining for Bitcoins is quite cheap! The country which is located right next to the aforementioned nation of Belarus - lets people mine for one full Bitcoin for just $1852 in electricity charges.
- Trinidad and Tobago: $1190: This Caribbean nation is known not only for its calypso and happy go lucky lifestyle, but is also a place where you can mine an entire Bitcoin for just $1190 in electricity expenses! For an island nation - this is quite a low price!
- Venezuela: $531: You can mine an entire Bitcoin in Venezuela for just $531. This is the cheapest place on the planet to mine for Bitcoins as it costs just a little above $500 in electricity costs to mine for one whole Bitcoin! This South American nation is also in the news over it’s official cryptocurrency, the Petrocoin.
The costs above have been calculated on the basis of the average residential electricity prices of these nations. Actual prices may vary.
When it comes to the electricity costs, you not only need to consider the fact that it consumes electricity that is used during the processing, but it also consumes a lot of energy when it comes to keeping devices cool. Often, multiple air conditioners or similar cooling devices need to be kept on for the entire duration of the mining, especially if you live in hotter nations.
Moreover, while the costs for mining equipment are a one-time investment, electricity costs are recurring. There are a number of complex calculations involved when it comes to figuring out the cost of mining. Cryptoground’s Bitcoin Mining Calculator helps you figure out the costs by simply entering basic details.