Bitcoin mining’s accessible nature has changed as the network has grown in use and adoption.
CoinGecko, one of the most referenced cryptocurrency price monitoring platforms in the crypto industry, has released a new report on the profitability of Bitcoin mining based on energy costs.
The report, titled Household Electricity Costs to Mine 1 Bitcoin at Home, Around the World, looks at how profitable it is for solo miners to mine 1 BTC today.
Although most of the Bitcoin miners that exist in the network have chosen to join a group or mining pool, there are still those who do it alone from their homes.
The platform pointed out that, in addition to the investment in ASIC hardware, the cost of electricity represents the largest expense for solo miners, which affects the profitability of this activity according to the part of the world where they have their operations.
How Much It Costs to Extract 1 Bitcoin
The cost of mining 1 Bitcoin varies depending on the price of electricity in different regions. According to the report, European countries are the least profitable for solo bitcoin mining. By contrast, Asian countries offer the best profitability due to low energy costs.
CoinGecko noted that Lebanon, located on the coast of Asia, is the most profitable country to mine 1 BTC. Energy costs in Lebanon allow miners to generate 1 BTC for just $266 in energy, offering a high level of profitability.
However, while Lebanon offers a high level of profitability for solo Bitcoin miners, the average cost of energy for miners in Asia is $20,635.62 per BTC, the platform noted.
According to the platform’s analysts, in general, the average cost of household electricity needed to extract 1 BTC from the network is $46,291.24, 35% higher than the current market price of the cryptocurrency. Thus, the Asian region has the lowest average energy cost for solo Bitcoin miners.
Only 65 Countries are Profitable to Mine Bitcoin
Globally, only 65 countries are profitable to solo mine Bitcoin. Asia stands out as the region with the largest number of profitable countries for mining, with a total of 34 countries, including Lebanon, Iran, Syria, Ethiopia, Sudan, Libya, Kyrgyzstan, Angola, Zimbabwe and Bhutan.
In second place is Africa, a region with a promising future for the cryptocurrency industry, which has a total of 18 countries where it is profitable to extract bitcoins with domestic energy.
On the other hand, the American continent, mainly Latin America and the Caribbean, offers great opportunities for solo miners, hosting a total of 8 countries with a high level of profitability for mining.
Finally, in Europe there are 5 countries where CoinGecko determined that it is profitable to extract bitcoins from the network using the home network.
Some countries have completely banned crypto mining, trading and use. These restrictions, predominantly in Africa and Asia, not only impact the viability of mining, but also reflect a diverse attitude towards cryptocurrencies internationally.
Another Solo Miner Takes Bitcoin Block Reward
Recently, a new solo Bitcoin miner managed to mine a block on the blockchain network with only 1 PH/s hash rate on the network, taking with him the Bitcoin block reward of 6.25 BTC, currently valued at about $160,000 dollars.
In the report, CoinGecko highlights that solo miners, with such a small hash power, could solve a block on the blockchain once every 7 years on average, with the level of difficulty that the Bitcoin network possesses today, of 52.39 trillion.
By Audy Castaneda