Bitcoin Mining Costs Throughout The World
Bitcoin emerged as a worldwide phenomenon. Its gone from something mostly talked about online and between enthusiasts to being a household name and being covered nonstop by major news outlets. Its value rose to record heights at the end of 2017 before taking a sharp decline in January 2018. However, since then the value has rebounded and the cryptocurrency continues to make headlines. One thing that people are most interested in is learning about how bitcoin works. Specifically, individuals are curious about the mining process, how it works, and how much they can potentially make from it. Mining is expensive and as more people set up rigs and more coins are mined, it only gets harder and pricier. Previously, our parent company Crescent Electric Supply Company conducted a study on the cost of mining a bitcoin in each state in the U.S. By using averaged data from three mining rigs and the average electricity cost in each state, they came to some pretty interesting results that showed how the costs can differ greatly depending on where you live. At EliteFixtures.com, we decided we wanted to expand on this study. So, we went worldwide. We looked at the cost to mine one bitcoin in 115 different countries based on average electricity rates according to government data, utility company data, and/or world reports from IEA, EIA, OANDA, etc. For the mining rigs, we used the AntMiner S9, the AntMiner S7, and the Avalon 6. We were able to calculate the numbers on how many days it would take to mine one coin and how much power that would use. Based on the mining difficulty when this study was finalized in early January 2018, the AntMiner S9 would use 17,773.344 kilowatts and take 548.56 days to mine a coin. The S7 would use 45,889.008 kilowatts and take 1580.2 days, and the Avalon Continue reading >>
How Much To Mine Bitcoin? Mapping The Worlds Most Affordable Countries
A dozen countries where bitcoin craze may never catch on In the midst of the recent bitcoin fever, many have been tempted to take their savings from under the mattress and join the ranks of crypto-investors. Other crypto-enthusiasts have acquired the necessary equipment to start mining bitcoin from home. The idea of just plugging your computer or a specially designed mining farm into the internet and creating money out of thin air sounds extremely attractive for many people across the world. But what expenses can arise out of mining process? How much does it cost to mine bitcoin, and where on Earth can we find the cheapest place to start mining? Researchers from lighting and furniture firm, Elite Fixtures, have analyzed differences in the price of electricity across the world and declared Venezuela the cheapest place for mining. To create one bitcoin token, youll need just about $530. The figure is less than half of what youll have to pay in the second-cheapest country on the list, Trinidad and Tobago, where it costs $1,190. In Uzbekistan, which is in the third place, a miner will shell out a significantly higher cost of nearly $1,790 to mine a single bitcoin. Here are the least-expensive places where crypto-enthusiasts could go to mine bitcoin: South Korea, one of the world's biggest digital currency markets, has also been called the most expensive state for mining. It will cost you $26,170 to produce one bitcoin there, which is more than twice the present-day value of the world's number-one digital currency. Almost all of the top-20 states with the most expensive electricity were in Western Europe or were island nations in the Pacific. Niue, a small island nation in the South Pacific Ocean, was the second-most unprofitable country for mining, where it costs $17,566 t Continue reading >>
How Much Does It Cost To Mine Bitcoin Around The World?
How Much Does It Cost to Mine Bitcoin Around the World? By Nathan Reiff | March 8, 2018 6:30 AM EST What's the Difference between Bitcoin and Ripple? As the price of bitcoin has soared, so too has theenergy and computing power required to mine it. The world's most popular cryptocurrency by market cap is now most often mined by collectives or large-scale operations running multiple rigs. (See also: GPU Usage in Cryptocurrency Mining. ) Many individual miners have found that the cost of building a computing rig powerful enough to keep up in the process is simply unfeasible. Nonetheless, some areas have emerged as mining hubs for various cryptocurrencies, thanks in large part to available space and the cost of electricity. Now, one recent study, cited by bitcoin.com , aimed to determine just how much it costs to mine for bitcoin around the world. (See also: China May Curb Electricity for Bitcoin Miners . Elitefixtures.com conducted the study, basing its calculations on average electricity rates for 115 countries sourced from government data, as well as on estimates of the amount of time it would take to mine for a single BTC based on difficulty levels during January of 2018. The results showed that, depending upon where the mining happened, the total cost of mining for one bitcoin might vary dramatically. At the lower end of the spectrum were countries like Trinidad and Tobago ($1,190 to mine one BTC), Kuwait ($1,983), Belarus ($2,177), and Bangladesh ($2,379). Given that the price of bitcoin was significantly higher than this rate throughout January of 2018, one might expect to be able to earn a profit off of bitcoin mining in countries such as these. At the opposite end of the spectrum were countries like Belgium ($13,482), Cook Islands ($15,861), Marshall Islands ($14, Continue reading >>
The Average Electrical Costs To Mine Just One Bitcoin, Broken Down By State, Arestaggering
One of the things lost in all the bitcoin hoopla, from the massive swings in value to hackers wreaking havoc and all the doomsday predictions , is the fact that thee rise of bitcoin and other cryptocurrencies also mean massive electricity consumption. Back in December, Ars Technica published an article on bitcoin in which they cited one estimate by Digiconomist that suggests the Bitcoin network is consuming as much energy as the country of Denmark. By the sites calculations, each Bitcoin transaction consumes 250kWh, enough to power homes for nine days. Naturally, this is leading to concerns about sustainability. Eric Holthaus, a writer for Grist, projects that, at current growth rates, the Bitcoin network will use as much electricity as the entire world does today by early 2020. This is an unsustainable trajectory, he writes. Now, a new study by Crescent Electric has revealed the average electrical costs to mine just one bitcoin in each of the 50 states and the numbers are staggering. The data they used is the average of three popular mining rigs (AntMiner S9, AntMinerS7, and Avalon 6) and their power consumption and time to mine one bitcoin. Then, that was multiplied by the average electricity rate (residential) in each state, taken from government data , to get the final cost. Here are the top 10 states with the highest average electrical cost per bitcoin mined. 3. Connecticut $6,951 per bitcoin mined. 4. Massachusetts $6,674 per bitcoin mined. 5. New Hampshire $6,425 per bitcoin mined. 6. California $6,200 per bitcoin mined. 8. Rhode Island $5,850 per bitcoin mined. Continue reading >>
Electricity Cost Of 1 Bitcoin (sep 2017) - Gregory Trubetskoy
How much does it cost in electricity to mine a Bitcoin? As of Sep 28, 2017, according to blockchain.info the hashrate is:9,214,860,125 GH/s. These days it seems that the best miner available for sale is theAntMiner S9. It is actually over a year old, and there are faster andmore energy efficient ASICs now, e.g. BitFury, but it is very hard toget any information on those, so we will just use the S9 information. The S9 is capable of 12,930 GH/s. The collective Bitcoin hash rate isequivalent to 712,672 S9 miners running in parallel. An S9 uses 1375W, which means that in 1 hour it consumes 1.375 kW/h. In USA, a kWh costs $0.12 on average. (It can beas low as 0.04, according to this EIA chart .) At 12c per kWh a running S9 costs $0.165 per hour. 712,672 running S9s would cost $117,591.02 per hour. Bitcoin blocks are solved at 6 per hour on average. Thus, each blockcosts $19,598.50 to solve. The current mining reward is 12.5 BTC, which gives us the answer: At \$0.12 kW/h a Bitcoin costs \$1,567.88 to mine. At \$0.04 kW/h a Bitcoin costs \$522.62 to mine. This, of course, does not include hardware and other costs. Its quite likely that the largest mining operations pay even lessthan $0.04 for electricity and the hardware they use is many timesmore efficient. While grosly inaccurate, this shows that mining is quite profitable,and that Bitcoin price would have to fall a lot for mining to stopbeing profitable. Current difficulty is 1103400932964, The difficulty before that was922724699725. Difficulty adjusts every 2,016 blocks, which is about two weeks. The Difficulty number is a coefficient of the difficulty 1 target,i.e. where the hash has to begin with 4 zero bytes (32 zero bits). Itmeans is that it is N times harder than 1 target. We can see that at the last adjustment it we Continue reading >>
Bitcoin Mining Costs As Much As Buying A Bitcoin These Days | Fortune
Mining Bitcoin is a notoriously expensive business recent calculations by the lighting company Elite Fixtures suggest that it costs a fortune to mine one Bitcoin in some countries, with the cost being as much as $26,170 in South Korea. Now analysts at Fundstrat have said that its no longer particularly profitable to mine Bitcoin. Bitcoin currently trades essentially at the break-even cost of mining a bitcoin, the research house said in a Thursday report. Bitcoins are created when a miner (essentially, a node on the Bitcoin network that boasts very fast computers) beats other miners to package up the latest block of Bitcoin transactions and add it to Bitcoins blockchainits famous shared ledger. The winner, who receives newly-minted Bitcoin as their reward, wins the race by providing the answer to a mathematical problem that is deliberately designed to use up a lot of computing power, in order to maintain stability in the speed at which these blocks are found. People often say the miners solve mathematical problems, but all they really do is repeatedly try to guess a lucky number , as quickly as possible, using the brute force of powerful computers. Fundstrats model for calculating mining costs takes a few factors into account. The first is the cost of the computers themselvesas the mathematical problems get progressively harder over time, miners need to keep upgrading their rigs. The second issue is energy. Making loads of incorrect guesses uses a lot of it. And then theres cooling; all that energy use throws off a lot of heat. (Bitcoin is, of course, terrible for the environment .) Which brings us back to Bitcoins profitability. This wasnt a problem when the cryptocurrency was heading to the Moon, as enthusiasts were fond of putting it, but since late last year, Bitcoi Continue reading >>
What Does It Costs To Mine A Bitcoin In Different Countries? | Fortune
Bitcoin is expensive whether you buy it from a broker or mine it yourself. But its a lot more expensive to mine in some countries than others. Elite Fixtures has compiled a list of mining costs throughout the world, using averaged data from three mining rigs and average electricity rates in 115 countries as of January 2018. And, based on those results, you absolutely do not want to launch a mining operation in South Korea, It costs $26,170 to mine a single Bitcoin in that country more than twice the current cost of buying one. Niue (an island country in the South Pacific, if you didnt know) was the second most expensive, coming in at $17,566. The U.S. was a little more than midway down the list, with the average cost coming in at $4,758. (If you really want to cut costs, do your U.S. mining in Louisiana , where the average cost for one coin is $3,224.) And Venezuela is the cheapest place on earth to do your mining, with an average cost of $531, as energy rates are subsidized by the government there. So what areas should Bitcoin miners avoid and where should they consider setting up operations? Heres what it costs in the most and least expensive countries. Least expensive countries to mine Bitcoin Continue reading >>
7 Reasons Bitcoin Mining Is Not Profitable Or Worth It In 2017
Jordan Tuwiner Last updated June 13, 2017 The early days of Bitcoin mining are often described as a gold rush. Satoshi Nakomotos invention of Bitcoin, a peer-to-peer electronic cash system, opened up an entirely new frontier, not just of freedom but of occasionally outrageous profits. Those with a strong interest in such things, namely cypherpunks, cryptographers, technically-minded libertarians and assorted hackers, were first to stake their claim. But is there still gold in them thar hills? Bitcoin mining has grown from a handful of early enthusiasts into a cottage industry, into a specialized industrial-level venture. The easy money was scooped out a long time ago and what remains is buried under the cryptographic equivalent of tons of hard rock. Only those with specialised, high-powered machinery are able to profitably extract bitcoins nowadays. While mining is still technically possible for anyone, those with underpowered setups will find more money is spent on electricity than is generated through mining. In other words, mining wont be profitable at a small scale unless you have access to free or really cheap electriciy. Well explain this situation in depth but first, you need to know a few basic technical terms from the world of Bitcoin mining: A group of Bitcoin transactions, chosen from the mempool (the list of all currently pending transactions) and recorded by a miner into the ever-growing record of blocks known as the blockchain. A new block is created on average every ten minutes. This is the cryptographic work which miners perform in order to find the solution which allows them to define a new block. PoW hashing ensures the proper function of the Bitcoin blockchain. Miners compete to solve a cryptographic puzzle, known as a hash. There are no shortcuts in Continue reading >>
Heres How Much It Costs To Mine A Single Bitcoin In Your Country
Heres how much it costs to mine a single bitcoin in your country Looking to mine bitcoin on the cheap? Head to Venezuela So-called bitcoin mining is a hot topic of in the cryptocurrency world. Thats chiefly because of the rising electricity costs associated with creating new digital coins. Lately, miners have flocked to Iceland, known for its relatively moderate climate and the abundance of hydropower. In fact, bitcoin mining energy consumption is set to exceed private consumption, an energy expert told the BBC . And according to the Bitcoin Energy Consumption Index , global energy usage of all bitcoin mining already is equivalent to the power uptake of the country of Denmark, with a population of 5.7 million, and will eventually approach Bangladesh, a country of 163 million people. In search of cost savings, cryptocurrency miners traverse the globe to take advantage of cheaper energy. Those virtual miners perform a crucial function within the blockchain, or the decentralized ledger technology that underpins most cryptocurrencies, by solving complex problems to validate transactions on the network, In exchange for this function, which powers miners are rewarded with bitcoins. However, because bitcoins protocol operates on a proof-of-work basismeaning it requires an expenditure of computing powerboth the power and difficulty of problems increase as miners approach the maximum number of bitcoins meant to exist at 21 million. Currently, there are about 16.9 million bitcoins in existence. The mainstream attention around bitcoin as it hit a peak level at $20,000 last December has led to an outcropping of digital miners and mining operations. So, where is the cheapest place to mine bitcoin? According to research conducted by Elite Fixtures , the cost of mining a bitcoin vari Continue reading >>
Here's How Much It Costs To Mine 1 Bitcoin In The U.s.
Here's How Much It Costs to Mine 1 Bitcoin in the U.S. While still profitable, bitcoin mining margins are plunging in the U.S. of late. Cryptocurrencies may have hit their first real hiccup in more than a year in recent weeks, but it's been one amazing ride for investors who've had the wherewithal and guts to stick it out. Last year, digital currencies rose by an aggregate of more than 3,300%, which is a return the stock market would have taken decades to deliver to investors. Even with crypto valuations being roughly halved since hitting an all-time high on Jan. 7, the combined market cap is up around 2,200% over where it began 2017. As it has been since day one, bitcoin continues to lead the charge as the world's most valuable cryptocurrency by market cap. It's more likely to be accepted by merchants than any other virtual currency, and it's the cryptocurrency responsible for bringing blockchain technology into the spotlight. Bitcoin also happens to be one of the most minable cryptocurrencies in the world as a result of its popularity and relatively high liquidity as a virtual asset. Mining refers to a process whereby people or businesses with high-powered computers solve complex mathematical equations, which are a result of the encryption found on blockchains, to validate a group of transactions, known as a block. These miners compete with one another to be the first to solve these equations, as the first to do so is given a "block reward," which is paid out in crypto tokens. Thus, bitcoin miners are solving complex equations to be paid in fractions of bitcoin tokens. That method of mining is known as " proof of work ." It's a highly intensive method of validating transactions to ensure that the same token wasn't spent twice. In bitcoin's early years, mining could b Continue reading >>
At $400 Million A Year, Academic Argues Bitcoin Mining Worth The Cost - Coindesk
At $400 Million a Year, Academic Argues Bitcoin Mining Worth the Cost The University College Londons blockchain research center has found that bitcoin's current proof-of-work (PoW) mining costsarenecessary to maintain the network's trustless and decentralized nature. In a recent research note, Tomaso Aste, a professor of complexity sciences and director of the UCL's Centre for Blockchain Technologies , offers a rough measure for calculating the "equilibrium fair cost" of bitcoins PoWsystem, suggesting that this fair cost per block is roughly $10,000 less than the current amount earned by discovering a blocktoday. The findings are notable given the longstanding debate over bitcoin's use of mining for transaction verification, one that has often found institutions and academics deeming the process either excessively wasteful or an unnecessary component of the system's architecture. Still, in the note, Aste calls the amountof money spent per block justified when observed through the lens of maintaining a distributed transaction network. "I conclude that the current cost, although large, is of a justified order of magnitude for an anonymous systems[sic] operating between untrustful parties." At current bitcoin prices , a block reward of 25 BTCnets miners or the distributed members of mining pools roughly $15,600. An upcoming block reward halving, scheduled for this weekend, will see the subsidy fall to 12.5 BTC. Bitcoin mining has been compared in the past to a form of energy arbitrage, by which mine operators profit by generating more money than they spend on electricity.The cheaper your power and the bigger your mine the more bitcoins you can attempt to generate. Aste estimates that as much as $50,000 is expended on electricity per hour by the worlds bitcoin miners. Usin Continue reading >>
In One Chart, Heres How Much It Costs To Mine Bitcoin In Your State
In one chart, heres how much it costs to mine bitcoin in your state Mining has become a hugely energy-intensive endeavor Perhaps the Pelican State should rename itself the Bitcoin State. According to a new analysis compiled by the Crescent Electric Supply Company, Louisiana could be the most appealing state in the country, based on one unusual metric. Why? Its cheaper to mine bitcoin there than in any other state in the U.S., based on the different electricity rates in different regions of the country. Mining a single bitcoin costs $3,224 in Louisiana, a relative bargain considering the digital currency BTCUSD, -1.99% last traded at $17,652.30, up 6.8% on the day, which brings its year-to-date rise to a massive 1,723%. The most expensive state, in contrast, is Hawaii, where the cost of electricity brings mining costs up to $9,483, meaning it is nearly three times more expensive to mine bitcoin in Honolulu than New Orleans. Courtesy the Crescent Electric Supply Company So-called miners perform a crucial function within the blockchain, or the decentralized ledger technology that underpins all crryptocurrencies, by solving complex computational problems to validate transactions on the network, In exchange for this function, which powers the blockchain, miners are rewarded with bitcoins. Mining is a very energy-intensive process; by one estimate, bitcoin requires 215 kilowatt-hours of energy for each transaction. According to Morgan Stanley data, the total energy consumption of the bitcoin network consumes as much electricity as 2 million U.S. homes. Mining becomes a magnitude more difficult and energy-draining the closer miners get the 21 million maximum number of bitcoin that will ever exist, a level that is calculated to be reached in 2140. Presently, the number of bitc Continue reading >>
The Average Cost To Mine 1 Bitcoin In 115 Different Countries - Bitcoin
The average cost to mine 1 bitcoin in 115 different countries Misleading title. This just calculates how much x amount of electricity cost in different coun tries. Still, this is only one of many important factors. How much will cooling cost? Easily double the electricity costs for that, if it's a hot region, or zero if it's iceland for example. How much will administration cost? How much are the wages in that country? Will you go to jail for mining? Oops, there goes Venezuela. Last, but most important, how much will you spend for the actual hardware? Probably half of the "retail" price if you are a neighbor of the producer, i.e. China. Oh, are there secret, grey-area deals directly with the powerplant? Then ignore the list completely, and start to print money. Yeah because we all know mining in SOUTHERN CALIFORNIA ($0.15-$0.25/KWH plus high usage penalty/prime time adders) costs the same as mining in WASHINGTON STATE ($0.03-$0.12/KWH flat usage rate)! Fun fact: Washington State gets nearly all its power from Dams, Windmills, Solar, and Nuclear. But the state doesn't consider Dams as "renewable" (think of the fish!) so we keep building more solar/windmills subsidized by taxpayers to meet "renewable" goals. DotComs love the cheap power, they all have multiple massive datacenters here right next to the dams! If you're making your employees use their national tax ID to work at your crypto currency farm, your arguably doing it wrong. No sir, there are no employees in this large facility, all the people going in and out and staying here are just doing it for fun. Yes. And of course electricity doesnt have some fixed price within a country. I know some people who are in GPU mining, and they secure special deals with some small electricity producers to buy their spare unused Continue reading >>
How Much Does It Cost To Mine Cryptocurrency?
How Much Does It Cost To Mine Cryptocurrency? The meteoric rise in the price of bitcoin and other cryptocurrencies in 2017 has investors flocking to accumulate coins at sky-high prices. Cryptocurrency miners, on the other hand, prefer to get their coins for free. But any savvy investor knows theres no such thing as free when it comes to investing, and cryptocurrency mining is a pricey endeavor. Attempting to mine bitcoin on a computer without specialized bitcoin mining hardware will only get you about 1 cent worth of bitcoin per month, according to Buy Bitcoin Worldwide . That specialized equipment, such as the Antminer S7 or the Antminer S9, can cost anywhere from a few hundred dollars to tens of thousands of dollars. Once a miner has forked over big bucks for mining hardware, any successful mining profits will be at least partially offset by the cost of electricity required to operate the devices. According to the website CryptoCompare , mining bitcoin at a rate of 4,730 GH/s and a cost of power of 12 cents per KW/h would consume $111.72 of electricity every month, or $1,359.20 each year. Crescent Electric estimates that bitcoin is by far the most expensive cryptocurrency to mine, with an average mining cost of $4,161 per bitcoin. Bitcoin mining is getting more difficult, and more expensive, by the day. The difficulty in mining bitcoin automatically adjusts for the hashrate of the miners to ensure a rate of one block every 10 minutes. With so many industrial-grade miners competing for a limited number of bitcoin, it can be very difficult for a non-professional individual miner to accomplish much of anything. Want to hear more about bitcoin from the PreMarket Prep Bitcoin Special ? Click the play button below to purchase the full 90-minute show. A preview is also avai Continue reading >>
Bitcoin Mining Costs In The U.s.
Lately, bitcoin has been everywhere in the news. The cryptocurrency made headlines due to its dramatic rise in value over the past year. For most of 2017 and 2016, the value of one bitcoin hovered around $1,000 - $2,000. Towards the end of the year, the prices skyrocketed to $15,000 or more. While the prices have been in flux in the new year, news organizations seemingly cant stop writing about it and people cant stop reading and learning. People wanted to know how about the process -- how it works, what its used for, and then how they can get in on it. Mining bitcoin certainly isnt cheap. Even just running one rig can use hundreds or more kWh per month. So how much is that actually costing miners? At Crescent Electric, we decided to find out. For this study, we wanted to look at how much it would cost to mine one bitcoin in each state. First, we identified three mining rigs to research: the AntMiner S9, the AntMiner S7, and the Avalon 6. Then, we put together the numbers on how many days it would take to mine one coin and multiplied it by the power usage. Based on the mining difficulty when these numbers were pulled in December 2017, the AntMiner S9 would take 451.91 days to mine one coin and use 14641.884 kilowatts. The Antminer S7 would take 1,301.79 days to mine one coin and use 37803.9816 kilowatts. And the Avalon 6 would take 1,807.63 days to mine one coin and use 45552.276 kilowatts. We took those numbers, averaged them together, and then multiplied them by the average residential electricity rate in each state, based on government data. Heres what we found: Bitcoin mining costs by state in the U.S. Louisiana comes in as the cheapest state to mine at $3,224. Idaho, Washington, Tennessee, and Arkansas round out the top five, respectively. The most expensive state Continue reading >>