Bitcoin mining has come a long way in its 14-year history. What began as a simple task powered by desktop computers has now turned into an industry with many high-tech machines. Along with the popularity of mining BTC, the cost of electricity has also increased over time. This has made the activity all the more expensive to carry out.
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Mining a single Bitcoin (BTC) requires about 266,000 kilowatt-hours (kWh) of electricity. This translates to almost seven years of continuous mining at a monthly energy consumption of 143 kWh. Given the rising cost of electricity, there are only a few nations where BTC mining can be profitable. Let’s have a look at some of them located in the Middle East.
Top Countries to mine Bitcoin in the Middle East
Lebanon:
Although trading crypto is formally prohibited in Lebanon, there is no enforcement as such. Moreover, mining as a business seems to have grabbed the attention of many crypto enthusiasts in the country.
Electricity costs in the area are among the cheapest at around $0.002 per kWh, as per an April report by The Underfloor Heating Store. The average cost of electricity in the country is about $266.02 per month. This makes Bitcoin (BTC) mining quite profitable in the country. The area around the Chouf Mountains is particularly popular for mining due to the availability of constant electricity.
Libya:
Libya takes the second spot with an electricity cost of about $0.004 per kWh. However, crypto mining is a banned activity in Libya. Nonetheless, it has seen a rise in popularity as the country accounts for 0.6% of global mining power, as per a 2021 study. The country also has the highest percentage of Bitcoin in all of Africa.
Iran:
Iran comes in third, with an average electricity cost of about $0.005 per kWh. Moreover, the country recognizes crypto mining as a legal economic activity. Iran also became the first country to use crypto in its reserves to pay for imports and exports as a way to escape Western sanctions.
Sudan:
Sudan also has very cheap energy costs, at $0.008 per kWh. Although the Sudanese central bank has warned against the use of cryptocurrencies, there are no concrete laws as of yet. The cheap cost of electricity could make it a lucrative place for Bitcoin (BTC) mining operations. However, the lack of laws could pose a risk for such activities.
Also Read: UAE Gearing Up to Become Bitcoin Mining Hub
The Middle East is slowly turning into a hub for crypto-related businesses. Dubai, in particular, has made significant developments to cater to the growing industry. Many companies have decided to move their bases to the region due to its crypto-friendly laws. However, Dubai is not a cheap place to mine BTC.