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What are the costs for mining Bitcoin?

Author: Content Editor
A recent research by NFT Evening analyzed the average cost of mining one Bitcoin in various countries. The study revealed that countries with lower mining costs are generally those that extract fossil fuels such as oil and natural gas. Russia was found to be one of the most affordable countries for mining, with an average extraction cost of $39,700. Surprisingly, Iran had the lowest cost at only $1,300, despite suspending crypto mining to conserve energy. Other countries with low mining costs included Libya, Nigeria, Ethiopia, Sudan, Syria, Cuba, Angola, Kyrgyzstan, and Bhutan. Many of these countries were oil-producing nations, excluding Bhutan, where the state mines Bitcoin and has accumulated $780 million. The research found that Asia and Africa had the greatest concentration of countries with low mining costs. In contrast, the USA had an average domestic extraction cost exceeding $100,000, making it generally unprofitable to mine Bitcoin at home unless done industrially. However, the cost varied across different states in the US, with places like Texas being more cost-effective. China, the country with the second-largest hashrate, had an average domestic mining cost of $50,000. Other regions with low costs included the Middle East, Central Asia, Malaysia, Laos, Myanmar, and Kazakhstan. African countries had low costs due to low consumption, despite limited electricity production. European and Oceania countries had higher average domestic mining costs, with Ireland and Belgium having the highest costs overall. The differences in mining costs were primarily influenced by fossil fuel extraction locations and electricity consumption patterns.

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