Bitcoin Mining Costs In Asia Are Cheapest, BTC Mining Fees In Europe Are The Most Expensive

JAKARTA - A recent study shows that despite the difference in tariffs and electricity rules, the Asian region as a whole has the lowest average bitcoin mining costs for solo miners or single miners. On the other hand, the surge in energy prices due to Covid-19, heat waves, and war in Ukraine has made bitcoin mining in Europe largely unfavorable.

A solo miner requires an average of 266,000 kilowatt-hours (kWh) of electricity to get one bitcoin, with this process taking about seven years and requiring a monthly electricity consumption of around 143 kWh, according to researchers' estimates.

While acknowledging that the era of minimal power bitcoin mining and desktop computers has passed, researchers have analyzed the cost of household electricity around the world to illustrate prospects for single miners operating in decentralized networks.

Home mining costs

In a study developed by crypto asset aggregation portal Coingecko, it was revealed that the average household electricity cost required to mine one bitcoin was 46,291.24 US dollars (Rp709 million). This represents an increase of about 35% of BTC's average daily price in July 2023, or about 30,090.08 US dollars (Rp461 million).

However, the difference in household electricity costs in various regions is quite striking. Asia, with an average cost of US$20,635.62 per bitcoin, is the only area where mining is still profitable for single miners.

The authors of the report highlight significant differences between countries in the region, with the lowest electricity costs in Lebanon of US$266.20 and the highest in Japan of US$64,111.02 (Rp982 million). Interestingly, five of the top ten countries most profitable for bitcoin mining are in Asia.

In Europe, which has the highest average household electricity cost of 85,767.84 US dollars (Rp1.3 billion), only five countries still provide profitability for single mining based on household electricity costs. Nine of the ten countries most unfavorable for mining are in this region, with costs reaching 208,560.33 US dollars (3.1 billion) IDR in Italy.

The researchers also highlighted that electricity consumption per hour to mine one bitcoin, around 4.6 kWh, is not much different from other household appliances such as an electrical cassation (3.5 kWh) or clothing dryer (averaged 5 kWh). In addition, the monthly electricity consumption required to mine one bitcoin is only about one sixth of the average household electricity consumption in 2021.

Through this study, the overview of bitcoin mining costs and profitability in various regions has become clearer, while challenges and opportunities continue to form a global crypto mining landscape.