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The profitability of mining Bitoin depends in great part on the cost of electricity and soaring energy prices across the globe are impacting bitcoin mining operations.
Given the amount of energy required to mine 1 BTC, the cost of energy crisis is understandably of the main factors mining companies must consider when looking to maximise profits – now more than ever before.
A recent report by Business Insider looked at the average cost in energy to mine 1 BTC around the world and found Africa to be the cheapest, with an average cost of just $4,626 to mine 1 BTC.
It costs an average of just $4,626 in electricity to mine 1 BTC in Africa, with Algeria as front runner at just $4,181.86 per bitcoin.
High electricity prices mean it is now unfeasible for most individual miners to compete in the market, having been “priced out”. Larger mining operations are on the look-out for the best locations to move their operations to taking into account aspects such as regulation, environment, infrastructure and overall cost of mining.
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Bitcoin miners are in search of cheap places in the world to set up operation amid rising energy costs.
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Europe, Asia, and South America average the world’s most expensive places to mine bitcoin.
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Africa has emerged as having the most economical places to mine bitcoin.
According to Business Insider, the Oceana region is the most expensive area in the world for bitcoin mining, where it takes an average of $12,203 electricity cost to mine a bitcoin, followed by South America at a cost of $7,150. It costs an average of $6,695 to mine in Europe and in Asia, the cost is close behind at $6,378. In North America the cost is a little lower at $6,249; while in the Middle East it is lower still at $5,456.