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The Cost of Mining Bitcoin in 198 Different Countries

by Carmen Ang
This post is by Carmen Ang from Visual Capitalist

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Map comparing the cost of mining bitcoin in 198 countries

Cost of Mining Bitcoin in 198 Different Countries

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It takes an estimated 1,449 kilowatt hours (kWh) of energy to mine a single bitcoin. That’s the same amount of energy an average U.S. household consumes in approximately 13 years.

Given the high amount of energy needed to mine bitcoin, it can be a costly venture to get into. But exact prices fluctuate, depending on the location and the cost of electricity in the area.

Where are the cheapest and most expensive places to mine this popular cryptocurrency? This graphic by 911 Metallurgist provides a snapshot of the estimated cost of mining bitcoin around the world, using pricing and relative costs from March 23, 2022.

How Does Bitcoin Mining Work?

Before diving in, it’s worth briefly explaining the basics of bitcoin mining, and why it requires so much energy.

When someone mines for bitcoin, what they’re really doing is adding and verifying a new transaction record to the blockchain—the decentralized bank ledger where bitcoin is traded and distributed.

To create this new record, crypto miners need to crack a complex equation that’s been generated by the blockchain system.

Potentially tens of thousands of miners are racing to crack the same code at any given time. Only the first person to solve the equation gets rewarded (unless you’re part of a mining pool, which is essentially a group of miners who agree to (Read more...)

After China’s Crypto Ban, Who Leads in Bitcoin Mining?

by Sponsored Content

The following content is sponsored by Global X.

 

Global X BKCH ETF

The Briefing

  • China issued a ban on all crypto activities in September 2021
  • As a result, the U.S. has greatly increased its share of global Bitcoin hash rate

Bitcoin Mining Moves to America

Bitcoin mining is a process that verifies transactions on the blockchain ledger, while also bringing new bitcoins into circulation.

To be successful at this, cryptominers require vast amounts of computing power, meaning electricity becomes one of their most significant costs. This pushes them to locate wherever electricity is cheapest.

For years, China was the optimal location—the country has an abundance of cheap, coal-powered electricity. However, in September 2021, the Chinese government issued a blanket ban on all crypto activities.

In this graphic sponsored by Global X, we illustrate a movement that’s being dubbed “the great mining migration”.

Bitcoin Hashrate by Country

The University of Cambridge maintains various datasets on the Bitcoin blockchain, including power consumption and hash rate. Global hash rate measures the total computational power that is dedicated to mining.

The table below shows a breakdown of global hashrate by country.

CountryShare of Global Hash rate
as of September 2019 (%)		Share of Global Hash rate
as of August 2021 (%)
?? U.S.4.1%35.4%
?? Kazakhstan1.4%18.1%
? Other6.1%13.5%
?? Russia5.9%11.2%
?? Canada1.1%9.6%
?? Malaysia3.3%4.6%
?? Germany0.9%4.5%
?? Iran1.7%3.1%
?? China75.5%0.0%

This data shows us how dramatic the shift has been. Just two years ago, China accounted for (Read more...)

Visualizing the Power Consumption of Bitcoin Mining

by Marcus Lu
This post is by Marcus Lu from Visual Capitalist

Bitcoin Mining Electricity Consumption

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Visualizing the Power Consumption of Bitcoin Mining

Cryptocurrencies have been some of the most talked-about assets in recent months, with bitcoin and ether prices reaching record highs. These gains were driven by a flurry of announcements, including increased adoption by businesses and institutions.

Lesser known, however, is just how much electricity is required to power the Bitcoin network. To put this into perspective, we’ve used data from the University of Cambridge’s Bitcoin Electricity Consumption Index (CBECI) to compare Bitcoin’s power consumption with a variety of countries and companies.

Why Does Bitcoin Mining Require So Much Power?

When people mine bitcoins, what they’re really doing is updating the ledger of Bitcoin transactions, also known as the blockchain. This requires them to solve numerical puzzles which have a 64-digit hexadecimal solution known as a hash.

Miners may be rewarded with bitcoins, but only if they arrive at the solution before others. It is for this reason that Bitcoin mining facilities—warehouses filled with computers—have been popping up around the world.

These facilities enable miners to scale (Read more...)