Mining a Bitcoin has an average value of $5000
The investment price to mine a Bitcoin, according to BitOoda data, is about $5,000. The study was conducted taking into account several factors such as the cost of ASICs, the value of electricity, as well as the difficulty of the network to perform the work.
Naturally, the price of electricity is the determining factor in this business. For this reason, it must be taken into account that the cost of the service makes the investment value different in each country.
For example, at the moment in some provinces of China, like Sichuan or Yunnan, the winter season is a factor that plays in favor of mining. The costs of hydropower are minimal in these regions because of the winter season.
Investment costs vary from country to country
According to the study data, the cost in cents per kilowatt/hour is counted from $0.5 onwards. However, there are exceptions such as the above-mentioned Chinese provinces, where the value at this time would be approximately $0.03. Based on the average of these costs, the cost of mining a Bitcoin is calculated.
There are more extreme examples such as the case of Venezuela, where electricity is free and Bitcoin mining is a totally legal activity. This South American country is currently ranked 10th in the world in terms of hash power, according to data from the Center for Alternative Finance at the University of Cambridge.
Although Venezuela might have the ideal characteristics, appearances can be deceiving. The nation’s police forces, taking advantage of the internal anarchy caused by a prolonged economic crisis, act with impunity.
Recently, there have been cases of seizure and extortion against Bitcoin miners. Even so, the country continues to hold a respectable position in this business, which makes it stand out in the international top ten. Another negative fact is that there are constant interruptions in electricity service in the country.
The investment value to mine a Bitcoin has different variables, the main one being the cost of electricity.
In some countries, the cost of electricity is extremely low and mining a Bitcoin has great investment advantages. Source: BitOoda
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Nations where mining a Bitcoin costs more than BTC
In Latin America, there are countries where the cost of electricity, as well as other regulations and taxes, make the activity difficult. For example, in Costa Rica, the value of electricity is about $0.12 cents per KW/H. However, the costs of equipment and infrastructure, added to the taxes of the Fiscal Plan, make the success of the business difficult.
It should be noted, however, that the parameters used in the study to calculate the cost of mining a Bitcoin, focus on large companies. Thus, for example, it is shown that most large mining centers pay no more than 3 cents per KW/H.
In the United States, the cost of electricity, although not the highest in the world, poses great challenges for investors who want to mine a Bitcoin. In that nation, the machines that make mining profitable are the latest models such as the S17 70T or the new S19 series of Bitmain.
It should be noted that the legendary S9, one of the most used machines for mining Immediate Edge, is already virtually inoperative worldwide. With a few exceptions, this machine has been shut down.