Have you ever wondered which country is the cheapest and most expensive for Bitcoin mining? According to research by CoinGecko, Italy is the most expensive country for crypto miners because it takes almost $210,000 worth of electricity to produce one BTC. On the other hand, despite its economic problems, Lebanon is the cheapest location for such activities.
Not suitable for European miners
When deciding to join the ecosystem, Bitcoin miners depend on several vital factors such as the cost of electricity, the quality of the machines used, and the mining difficulty of the network.
Crypto data aggregator CoinGecko has revealed that the average household electricity value to produce one Bitcoin is $46,291. That means almost double the current price of the leading digital asset.
Which countries are the most expensive for mining?
However, there are also regions where BTC mining fees are much more expensive. Italy tops the list with the electricity cost of $208,560 required to produce one Bitcoin. Many other European countries such as Austria, Belgium, Germany, the Netherlands, the UK and others rank second to ninth. The Cayman Islands are the only country in the top 10 that is not in the Old Continent.
CoinGecko has determined that high energy costs in Europe can be attributed to multiple causes, including the global rise in wholesale electricity prices shortly after the COVID-19 outbreak and the crisis caused by the military conflict between Russia and Ukraine.
Which are the cheapest countries to mine Bitcoin?
The research estimates that there are significant differences in electricity costs between continents. For example, the average household energy price for mining one BTC in Europe is estimated at $85,767, while in Asia the figure is slightly higher at $20,000.
Lebanon, on the other hand, seems like an excellent choice for crypto miners as it only takes $266 to mine a single Bitcoin there. Iran, Syria, Ethiopia and Sudan make up the top 5 of the cheapest regions.
There are countries where electricity costs are also low, but local governments have banned cryptocurrency transactions. An example is Iraq, where mining a BTC costs less than $4,000.
The Iraqi central bank banned the use of cryptocurrencies in 2017. Otherwise, Iraq would have been listed as the ninth cheapest country to mine Bitcoin.