The Bitcoin mining sector experienced a significant revival after the bear market of 2022. However, the escalated energy usage and expenses associated with mining operations have raised alarms for various governments. While certain regulators are implementing strategies to enhance the efficiency of mining, others are grappling with heightened production costs for each Bitcoin.
A recent CoinGecko report revealed that concerning household electricity expenses, Europe encompasses nine out of the ten lowest-ranking countries where Bitcoin mining faces the least favorable economic conditions. The report further reads,
“The average household electricity cost to mine 1 Bitcoin is $46,291.24, which is 35% higher than the average daily price of 1 BTC in July 2023 [$30,090.08].“
The study also indicated that a mere 65 nations yield profitability for individual Bitcoin miners when considering only household electricity costs. Out of these, 34 nations are situated in Asia. Europe had a mere five countries.
Italy deemed the most unprofitable country to mine 1 Bitcoin
According to the report, Italy was recognized as the most expensive nation for household Bitcoin mining. This was at a cost of $208,560 for mining one Bitcoin. This implied that the expense of mining one BTC in Italy is equal to the value of around eight BTC. Austria and Belgium followed suit.
In contrast, in Lebanon, individual miners can produce one BTC by utilizing household electricity at a mere cost of $266. This statistic indicated a remarkable difference. Lebanon is roughly 783 times more affordable than the expenses incurred for Bitcoin mining in Italy.
Where does the U.S. stand?
Additionally, the CoinGecko report pointed out that the United States occupies a position in the middle range. This suggested that the cost of mining the primary cryptocurrency isn’t overly expensive or exceptionally inexpensive. On average, household Bitcoin mining in the United States stands at around $46.28K per Bitcoin.
It’s important to highlight that cryptocurrency miners are making significant progress in the United States. As per a recent update, they are taking steps to create a fresh presence in U.S. policy circles. This will be done by launching the Digital Energy Council. This organization aims to advocate for favorable policies, particularly at a time when regulatory bodies and Congress are grappling with the upcoming phases of cryptocurrency regulation.
Also Read: Biden’s 30% Bitcoin Mining Tax Plan Won’t Work: Marathon CEO Fred Thiel
Bitcoin mining to become more efficient?
A remarkable advancement has taken place in the realm of Bitcoin mining, as Quantum Blockchain Technologies [QBT], a company based in the United Kingdom, has achieved a significant milestone. They have devised a prominent computational technique known as Message Scheduling For Cryptographic Hashing [MSFCA] with the intention of greatly enhancing the efficiency of Bitcoin mining. The CEO of QBT, Francesco Gardin, said,
“The new concept behind this idea disrupts, under special conditions, a fundamental BTC blockchain paradigm; computation for future blocks can take place before the previous block is mined. This is quite a radical change of the paradigm.”
Given the ongoing emergence of artificial intelligence and the significance of Bitcoin mining, there is a possibility for the industry to witness heightened efficiency in mining operations. Over the course of two years, the company has successfully devised multiple patented techniques. This was done by drawing upon the knowledge of around twenty specialists from fields such as quantum computing, machine learning, cryptography, ASIC chip design, and algorithm optimization theory. Two methods developed by OBT’s machine learning teams stand out here.
“Method A” reportedly enhances miner efficiency by 10%. “Method B” is designed to significantly increase the likelihood of a miner discovering a successful hash by 260%. Therefore, with widespread adoption of the same, the Bitcoin mining industry could see a transformation.