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What countries are most profitable for mining?

20 December 2017 00:00, UTC
By Margaret NAIL, Massimo Di GIUDA
The cost of electricity is a significant part of the total expenses for miners. To carry out one bitcoin transaction alone, 215 kWh are needed. Bitnewstoday.com provides an analysis of the electricity pricing in various countries around the world.

What is the cost of electricity in your country?

Bitnewstoday.com

The average electricity price across the world is 18.8 cents per 1 kWh. However, prices range from 3 cents per kWh in Algeria to 62 cents per kWh in South Korea. Thus bitcoin-transaction for Algerian miners costs about $5, whereas for miners from South Korea – $ 101. The difference reaches 20.5 times (!).

The list of countries with the highest cost of electricity apart from South Korea includes: Tonga, Guyana, Greenland, Papua New Guinea, French Guiana, Haiti, the Bahamas.

Country Price 1 kWh, $ Cost per bitcoin transaction, $
South Korea 0,62 133,3
Tonga 0,58 124,7
Guyana 0,54 116,1
Greenland 0,50 107,5
Papua New Guinea 0,47 101,1
French Guiana 0,47 101,1
Haiti 0,42 90,3
Bahamas 0,41 88,2

Chart 1 – Countries with the most expensive electricity

Electricity will cost miners in Denmark (34.7 cents) and Germany (33.5 cents) almost twice as much as the world average.

In 82 countries from the 133 considered, electricity price is below the world average. This list includes the United States (13 cents), Canada (14 cents), the Czech Republic (16 cents).

The TOP-10 countries with the cheapest electricity are above-mentioned Algeria, Venezuela, Ukraine, Kazakhstan, Kyrgyzstan, Bhutan, the United Arab Emirates, Kuwait and Russia.

Country Price 1 kWh, $ Cost per bitcoin transaction, $
Algeria 0,03 6,45
Kazakhstan 0,035 7,5
Ukraine 0,035 7,5
Venezuela 0,035 7,5
Bhutan 0,04 8,6
Kyrgyzstan 0,04 8,6
Kuwait 0,05 10,8
United Arab Emirates 0,05 10,8
Russia 0,054 11,6

Chart 2 – Countries with the cheapest electricity

At first sight it may seem that the mining farm should definitely be opened in the countries indicated in the above table. However, to choose the proper location for mining, it is necessary to take into account not only the cost of electricity, but also a lot of other factors, including security, legislation in the sphere of crypto economics, living standards, etc.

In addition to the article, a map showing electricity pricing is presented. It shows the average prices for countries per kWh in US cents. If a country has a progressive scale, where the cost for a bigger number of kilowatts is higher, than for a small consumption, then the upper bar is indicated on the map. African countries weren’t taken into account, except for the relatively developed countries, and those where the proportion of the population having access to the electricity is 95% or higher.

How many bitcoins are left to be mined?

Let's explore the world together. Tell us about cost of electricity in your country, state, city! We'll put it down on our map! editore@bitnewstoday.com



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