Une nouvelle survey was released which shows the cost of Bitcoin mining in 198 countries around the world.
The country where it costs the least to mine bitcoin is Kuwait. It costs $1393 to mine a single bitcoin. So, for mining a single bitcoin, a miner in Kuwait can earn $19 today. Remember that profits also depend on the price of bitcoin. The benefits are substantial, as we can see.
This is also the case for Algeria, which comes in second place in the ranking of countries where it costs the least to mine bitcoin. For a bitcoin miner, he would then make a net profit of $15,574.67. The country's electricity costs are about 0.038 USD per kWh. We are very far from the prices practiced in France for example where the price is 0.1740 € (in August 2022). This explains why bitcoin mining in France and Europe is not a profitable business…
We can also add that we do our calculations with a bitcoin worth $20,000. Remember that BTC has already reached more than $60,000 in 2021. Thus, if the price of BTC takes off again, miners in this region could triple their profits.
This map that shows bitcoin mining costs for each country can then boost new regions and countries.
This could be the case for example of Algeria, Sudan or Ethiopia. For the moment, in this top 10 of the cheapest countries, only Kazakhstan benefits from bitcoin mining. The country is in fact in 2nd place according to the " University of Cambridge Bitcoin Electricity Consumption Index » countries with the most bitcoin miners, after the USA and before Russia.
What are the cheapest countries to mine cryptocurrencies?
This map illustrates the electricity costs for mining a bitcoin around the world. The map was produced with data collected in March 2022 on the cost of electricity in each country in the world.
Here is the ranking of the 198 countries according to the costs of mining 1 bitcoin and the profit made (according to the bitcoin price for the month of August 2022, at around $20,000).
| Cost to mine 1 BTC | Profit with 1 BTC = 20,000 | |
| 1 ?? Kuwait | $1 393,95 | $18 362,58 |
| 2 ?? Algeria | $ 4,181.86 | $ 15,574.67 |
| 3 ?? Sudan | $4 779,27 | $14 977,26 |
| 4 ?? Yemen | $7 161,77 | $12 594,76 |
| 5 ?? Ethiopia | $7 168,91 | $12 587,62 |
| 6 ?? Kyrgyzstan | $7 368,04 | $12 587,62 |
| 7 ?? Angola | $7 744,32 | $12 388,49 |
| 8 ?? Qatar | $7 368,04 | $12 388,49 |
| 9 ?? North Korea | $7 744,32 | $12 012,21 |
| 10 ?? Kazakhstan | $8 762,00 | $10 994,53 |
What are the most expensive countries to mine bitcoin?
On the map, the country where it costs the most to mine bitcoin is Venezuela. It will cost 246 electricity to mine a single bitcoin. Clearly, with a bitcoin at $530, this is a more than unprofitable deal. Basically understand that if the miners wanted to do this in Venezuela, it would mean losing/throwing away $20,000.
Can you mine bitcoin with green energy?
To mine one bitcoin, it takes approximately 1450 kilowatt hours. Now, to get a concrete picture of what that amounts to, it's roughly the same amount of energy that an average American household spends in 13 years.
There are many detractors for whom Bitcoin is losing credibility due to its high energy consumption. And, the media have often broadcast the image that bitcoin mining is equivalent to the energy expenditure of a country like Ireland. According to the media, the reference country changes but the idea always remains the same: Bitcoin consumes as much electricity as a small state.
You don't have to be a great ecological activist to be outraged by it, either. However, this ignores the energy cost of the current financial system on the one hand and of other polluting industries (textiles for example). And on the other hand, it is above all forgetting that mining farms optimize their consumption as best as possible to be profitable. The latter are turning more towards green energies. This is a fact which can be explained by the optimization of costs that mining farms (necessarily) seek.
New bitcoin mining opportunities
Indeed, many mining companies use the electricity created in surplus (that which is not used) to run their machines. Likewise, many mining farms use renewable energies. Among these exemplary companies, we find for example BigBlock Datacenter and so many others who set up and operate mining farms using excess produced green energy.
If mining farms are now seeking to use green energy, it is also for economic reasons. This turns out to be less expensive than its fossil fuel equivalent, which explains why bitcoin miners are increasingly opting for renewable energy, according to the Bitcoin Mining Council.
Even more, and this may prove particularly interesting for Kuwait and Algeria, bitcoin miners can collaborate with oil companies. In fact, mining farms can optimize the flaring process of gas and oil companies by using the produced gas to power mining farms.
More: How Bitcoin Mining Helps Oil Companies Reduce Their Environmental Impact?
Is bitcoin mining an economic opportunity for certain countries?
The constant search for the cheapest electricity price is essential among cryptocurrency miners. Mining farms are often found in countries where electricity is the cheapest. It has been years since countries like Kazagstan or la Georgia attracts mining companies to develop part of their economies. Some countries, like Salvador decided to attract bitcoin miners as leverage for other industries.
With such a ranking, it could attract new businesses to the Maghreb regions and Africa in general. With the Central African Republic and sangocoin, the continent seems to have decided to take its part in this industry.
For Algeria, for example, it remains to be seen whether entrepreneurs will want to take advantage of this new El Dorado… It also remains to be seen whether or not the country will authorize these entrepreneurs to exercise this activity. Indeed, under the presidency of Bouteflika, the country had "banned" cryptocurrencies in 2018. This was well before the surge in bitcoin prices that we have seen in recent years. Many countries that were not "tolerant" towards bitcoin have since followed suit with cryptocurrencies. Better still, in Muslim countries, it has been accepted that the bitcoin was halal and that there was therefore no religious obstacle to developing businesses linked to Bitcoin.
Since 2019, the country has been governed by Abdelmadjid Tebboune. We can imagine that it will be more tolerant towards the blockchain. At least, we could hope that for obvious economic reasons, companies linked to this industry could emerge in the country.
It is indeed an economic boon for the largest country in Africa, which would also find a new financial windfall there, in addition to its oil resources...
Who knows? Perhaps Algeria will become an ideal partner for France and mining companies looking for inexpensive electricity in a geographically close country?
Disclaimer: This is not investment advice. Not all articles published on this blog should be considered investment advice.
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