Solo mining remains unprofitable in most countries, but there are some places where it costs less than $500 in electricity to mine 1 Bitcoin.
In the first few years of Bitcoin, mining was easy and profitable. With the network in its infancy and users few and far between, mining difficulty was incredibly low and required far less energy than it does today.
When Bitcoin gained popularity and its price increased in 2014, mining difficulty increased exponentially, leading to the development of ASICs (Application-Specific Integrated Circuits) – a hardware designed specifically for Bitcoin mining.
The development of ASICs and large-scale Bitcoin mining farms have now made solo mining extremely difficult and time consuming. While it’s rarely profitable, a new study by CoinGecko shows that it’s still possible in some parts of the world.
Read more: What is crypto mining? | Mining made simple
Mining profitability depends on various factors including mining difficulty and hash rates, but a key factor relates to the price of electricity. For context, it takes roughly 266,000 kilowatt-hours (kWh) of electricity to mine one Bitcoin – roughly the same as the annual electricity consumption of an average American household.
What nations are potentially profitable for Bitcoin mining?
The study reveals that just 65 countries present profitability potential for solo mining Bitcoin. Asia is the most profitable, with 34 countries offering potentially profitable operations, with Africa a close second, offering 18 countries with potential profitability.
The cheapest countries to solo mine Bitcoin based on the price of electricity are Lebanon, Iran and Syria, closely followed by Ethiopia, Sudan and Libya.
In Lebanon, it costs just $266 in electricity costs to mine 1 Bitcoin.
In Iran, it costs $532, and in Syria, $1330.
It’s important to note however that mining can overload electricity grids and lead to blackouts, which is why some countries such as Iran and Iceland have prohibited mining operations on several occasions.
| Country | Electricity Cost to Mine 1 BTC (USD) |
|---|---|
| Lebanon | 266.02 |
| Iran | 532.04 |
| Syria | 1330.1 |
| Ethiopia | 1596.12 |
| Sudan | 2128.17 |
| Libya | 2660.21 |
| Kyrgyzstan | 2660.21 |
| Angola | 3724.29 |
| Zimbabwe | 3990.31 |
| Bhutan | 4256.33 |
If you’re in Europe, solo mining isn’t profitable.
Bitcoin mining is unprofitable in 82 countries, according to CoinGecko, with electricity costs far surpassing the price of Bitcoin, which is approximately $28,300 at the time of writing.
Italy is the most expensive country to mine Bitcoin, costing over $208,500 to mine 1 BTC. Austria, Belgium and Denmark follow closely behind, with Denmark costing around $166,000.
In the UK, it costs $130,616 to solo mine one Bitcoin – roughly twice the price of one Bitcoin when it reached its highest peak of $68,789 in November 2021.
| Country | Electricity Cost to Mine 1 BTC (USD) |
|---|---|
| Italy | 208,560.33 |
| Austria | 184,352.44 |
| Belgium | 172,381.50 |
| Denmark | 166,795.06 |
| Germany | 163,336.79 |
| Ireland | 159,612.50 |
| Lithuania | 152,163.92 |
| Netherlands | 137,798.79 |
| United Kingdom | 130,616.23 |
| Cayman Islands | 128,222.04 |
In the years since the pandemic, household electricity prices have soared in Europe, sending the cost of Bitcoin mining upwards in tandem.
The 2022 heatwaves and the Russian invasion of Ukraine also impacted the situation, according to the study, “resulting in record-high electricity prices rendering Bitcoin mining largely unprofitable within the region”.
The study also outlines that the energy consumed by Bitcoin mining isn’t as extreme as media narratives lead us to believe.
When examining the energy consumption of Bitcoin mining per hour, Bitcoin consumes less energy than a conventional clothes dryer. A clothes dryer consumes 5 kilowatts per hour, while Bitcoin consumes 4.6.
Disclaimer: CryptoPlug does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.
