Global Disparity: Mining 1 BTC in Lebanon Costs 783 Times Less Than Italy, CoinGecko Finds
In a striking international divergence, the expenses associated with mining an individual Bitcoin (BTC) show remarkable contrasts across households worldwide. According to a recent report from CoinGecko, the cost of producing one Bitcoin in Italy reaches a staggering $208,500, while in Lebanon, the expense is approximately 783 times lower.
CoinGecko’s report, published on August 17, delves into the details, revealing that a mere 65 countries offer profitability for solo Bitcoin miners, exclusively based on household electricity costs. Within this set, 34 countries belong to Asia, while Europe is represented by only five.
Nevertheless, individual Bitcoin miners find themselves at odds with the global average of household electricity costs. The report highlights that “The average household electricity cost to mine one Bitcoin is $46,291.24, which is 35% higher than the average daily price of 1 BTC in July 2023 ($30,090.08).”
Italy emerges as the most expensive nation for household Bitcoin mining, with the cost per Bitcoin estimated at $208,560.33. As of the time of the report’s publication, this suggests that the expense of mining a single Bitcoin in Italy equates to the value of approximately eight Bitcoins.
Following Italy, Austria comes next with a cost of $184,352.44, trailed by Belgium at $172,381.50.
In contrast, Lebanon’s household electricity rates present an opportunity for individual miners to produce a single Bitcoin for a mere $266.02. This data underscores a staggering difference of around 783 times when compared to the expense of mining a Bitcoin in Italy, which stands at $208,560.33.
Iran ranks next on the list, with a production cost of $532.04 per Bitcoin. However, despite legalizing Bitcoin mining in 2019, Iran has intermittently prohibited such operations due to concerns about straining energy grids during the winter season.
A previous report on January 4 detailed the seizure of approximately 150,000 units of cryptocurrency mining equipment by Iran’s Organization for Collection and Sale of State-Owned Property (OCSSOP).
Sharing the report’s findings on August 19, Binance CEO Changpeng “CZ” Zhao uploaded a screenshot of the data onto X (previously known as Twitter). He directed a question to his 8.6 million followers, pondering why individuals from countries with such economical electricity rates wouldn’t engage in Bitcoin mining.
Nonetheless, CZ maintained his skepticism and expressed the belief that additional factors should be taken into consideration. However, he indicated that delving deeper into the matter is a valuable pursuit. CZ recognized an X user’s input, where the user highlighted a crucial point: many of these countries confront a shortage of electricity, preventing them from fully capitalizing on the advantageous low electricity expenses.
“The majority of these countries experience electricity shortages and frequently curtail heavy industrial activities in the summer or during peak usage periods,” the X user elaborated.