Europe's Bitcoin Quagmire: Mining Costs Skyrocket 783 Times Compared to Lebanon!

In the intriguing world of cryptocurrencies, profitability is directly linked to energy costs, and Europe seems to be trailing in this race.

by Faruk Imamovic
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Europe's Bitcoin Quagmire: Mining Costs Skyrocket 783 Times Compared to Lebanon!
© Getty Images News / Lauren DeCicca

In the intriguing world of cryptocurrencies, profitability is directly linked to energy costs, and Europe seems to be trailing in this race. According to a recent CoinGecko report, Europe finds itself home to a staggering 9 out of the 10 least profitable countries for bitcoin mining when household electricity costs come into play.

This fact sharply contrasts with the global landscape, where there's a vast disparity in costs across countries. To put this into perspective, mining a single bitcoin in Italy, which tops the list, incurs a whopping cost of $208,560.

Now, let's cast our gaze upon Lebanon. Here, individual Bitcoin miners can produce one bitcoin for a mere $266. Yes, you read that right - the cost disparity between Italy and Lebanon is an astounding 783 times!

Asia Takes the Lead, While Europe Lags Behind

The CoinGeck report, published on August 17, highlights that solo Bitcoin mining is profitable in merely 65 countries worldwide.

Out of these, a dominant 34 countries reside in Asia. In comparison, Europe presents a gloomy picture with only five countries making the cut. Solo Bitcoin miners in Europe are increasingly grappling with household electricity costs that starkly challenge the global average.

For instance, mining one bitcoin, on average, requires a household electricity expenditure of $46,291.24. This figure is a staggering 35% more than the average daily value of 1 BTC in July 2023, which stood at $30,090.08. A deeper dive into the report reveals more about Europe's mining landscape.

Italy leads as the most expensive country for household bitcoin mining. To emphasize, mining a single bitcoin in Italy amounts to the value of roughly eight bitcoins. Austria and Belgium trail Italy, with costs per bitcoin amounting to $184,352 and $172,382 respectively.

Bright Spots and Challenges Beyond Europe

While Lebanon offers a much rosier picture for bitcoin miners, Iran emerges as another viable option, with bitcoin production costs pegged at $532. But it's not all smooth sailing.

Despite legalizing bitcoin mining back in 2019, Iran has been a roller coaster of regulations. The country has flip-flopped its stance, imposing bans on legal mining operations on various occasions. The reason? Overburdened power grids, especially during the chilly winter months.

The world of Bitcoin mining is as volatile and varied as the cryptocurrency itself. While Europe may be facing challenges now, the dynamic nature of the crypto realm means the tables can turn anytime. Only time will tell how the scales will tip next.

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