Bitcoin remains equal in market price regardless of where it is mined, yet the costs and complexities can differ significantly. Let's explore how different countries handle the mining process.
Differences in Bitcoin Mining Costs by Country
According to data compiled by NFT Evening, the cost to mine one Bitcoin ranges from just above $8,000 in Ethiopia to over $320,000 in Ireland, reflecting a nearly fortyfold difference. While Ethiopia is the most affordable country for mining at around $8,200, Ireland represents the opposite end of the spectrum. High energy costs and strict regulatory environments restrict mining in countries like Italy, Germany, and the Netherlands.
Impact of Halving on Mining
The latest halving in April 2024, which reduced the reward from 6.25 to 3.125 BTC, did not affect all miners equally. While miners in Ethiopia were able to continue operations without significant risks, the halving rendered mining unviable in high-cost countries such as Brazil and Turkey. Conditions in the United Kingdom and South Korea became even harsher, leaving these countries off the global mining map.
Miners Adapting to Market Conditions
Miners worldwide are taking measures to adapt to the difficult conditions. Operations are relocating to countries with low and stable energy prices, such as Ethiopia and Paraguay. Meanwhile, miners in the U.S. are experimenting with new energy management strategies, participating in grid balancing programs to reduce costs.
The future of Bitcoin will largely depend on more sustainable mining infrastructure. If most new Bitcoins are mined in just a few regions, this will create a significant dependency on those locations, potentially posing risks to the global network.
