- CoinGecko’s report reveals global disparities in miners’ electricity costs. Italy’s costliest, at $208,560/BTC, contrasts with Lebanon’s $266/BTC.
- CoinGecko’s report shows 65 profitable countries for solo Bitcoin mining based on electricity costs, primarily in Asia.
Following the downturn in 2022, the Bitcoin mining industry witnessed a noteworthy resurgence. Nevertheless, the increased energy consumption and mining activities’ costs have prompted numerous government concerns. While certain regulatory bodies are devising approaches to improve mining efficiency, others are contending with elevated expenses in producing each Bitcoin.
A notable global disparity is evident in individual Bitcoin miners’ household electricity costs. The expense of generating a single Bitcoin varies significantly across different countries. For instance, the cost of producing one Bitcoin in Italy amounts to $208,560, whereas in Lebanon, it is approximately 783 times more economical, as indicated by a recent study.
Released on August 17th, the report by CoinGecko highlights that just 65 nations offer profitability to solo Bitcoin miners based exclusively on household electricity expenditures. Among these countries, 34 are situated in Asia, while Europe is represented by only five.
Nevertheless, individual Bitcoin miners encounter a divergence from the global mean of household electricity expenses. In the report, Italy was pinpointed as the most expensive nation for domestic Bitcoin mining, costing $208,560 per Bitcoin. At the moment of the report’s release, the expense of producing one Bitcoin in Italy equals the value of around eight Bitcoins. Subsequently, Austria ranked second with a cost of $184,352, followed by Belgium at $172,382.
Meanwhile, the cost of household electricity in Lebanon enables individual miners to create a single Bitcoin for a mere $266. According to this information, the disparity suggests that this expense is roughly 783 times more affordable than the cost of Bitcoin mining in Italy.
Subsequently, Iran came in next, with a manufacturing expense of $532 per Bitcoin. Nevertheless, despite Iran’s legalization of Bitcoin mining in 2019, the nation has intermittently prohibited authorized activities on multiple occasions, citing the strain on energy networks during the winter season.
What is the status of the United States in this regard?
Furthermore, the report from CoinGecko highlighted the United States’ placement within a moderate range. This indicates that the expense of mining the primary cryptocurrency in the U.S. is relatively low. Household Bitcoin mining in the United States averages approximately $46.28K per Bitcoin.
It’s crucial to emphasize cryptocurrency miners’ notable advancements in the United States. According to a recent report, they are actively working to establish a new influence within U.S. policy discussions. This endeavor involves launching the Digital Energy Council, an organization to advocate for favorable policies, particularly when regulatory agencies and Congress are wrestling with the forthcoming stages of cryptocurrency regulation.
Is there a trend toward increased efficiency in Bitcoin mining?
A notable breakthrough has occurred in Bitcoin mining, courtesy of Quantum Blockchain Technologies [QBT], a UK-based firm. They have reached a significant achievement by introducing a notable computational method referred to as Message Scheduling For Cryptographic Hashing [MSFCA], aimed at substantially boosting the efficiency of Bitcoin mining.
The CEO of QBT, Francesco Gardin, commented, “The new concept behind this idea disrupts, under special conditions, a fundamental BTC blockchain paradigm; computation for future blocks can take place before the previous block is mined. This is quite a radical change of the paradigm.”
Considering the ongoing rise of artificial intelligence and the significance of Bitcoin mining, there exists a potential for the industry to experience an elevation in the effectiveness of mining operations. Over a span of two years, the company has effectively created a variety of patented methodologies.
This achievement resulted from leveraging the expertise of approximately twenty specialists from diverse fields, including quantum computing, machine learning, cryptography, ASIC chip design, and algorithm optimization theory. Notably, two techniques developed by QBT’s machine learning teams stand out.
Referred to as “Approach A,” this approach purportedly enhances miner efficiency by 10%. On the other hand, “Approach B” is formulated to considerably raise the likelihood of a miner discovering a successful hash by 260%. Consequently, with the widespread adoption of these innovations, the Bitcoin mining sector could potentially undergo a significant transformation.
