Cost to Mine 1 BTC in every country

[mikeywith]

The annoying problem with this kind of "study" is that they lead to a second "expert" opinion on price.
You would be amazed how many times I've seen people saying that since the average cost to mine a  BTC is 30 000 there is no way in hell Bitcoin could go below this price, since, I don't know, we will break some rule of the universe if we do so.

Ya, that sounds really ridiculous, even if you were to very accurately calculate the average worldwide cost for mining BTC, it does not mean the price can't go below that, for many reasons but i will just list two.

1- Newly mined coins make only a fraction of the available supply, if it costs miners 15k it doesn't mean other people who own bitcoin won't sell it for 10k!
2- When the mining cost exceeds a certain level, some miners will drop and thus reducing the global average cost, say it's 15k now, if we fall to 10k in price, enough miners will shut down to make it profitable for the remaining, there will always be someone who mines bitcoin as long as it's the price is above 0, even if price dropped to a fraction of a cent, one guy would be mining it with his old Nokia.

The only number that any asset can't go below would be 0, with the exception of things like oil contracts.

 

[1714260556]

1714260556

[FP91G]

From this study, it becomes clear that mining Ethereum is much more profitable than Bitcoin, although in reality this is not the case. In most countries, it turns out that bitcoin mining is not profitable, and there are still many miners there. Apparently the analytics is not very accurate.

[darkv0rt3x]

What you guys think about Braiins approach of calculating the cost of production of 1 Bitcoin on their site? I see they end up mixing CAPEX with OPEX, but I can agree with the approach at least until we don't reach ROI.
The values are quite different from what I saw in the OP link.

https://insights.braiins.com/en/cost-to-mine/

[philipma1957]

What you guys think about Braiins approach of calculating the cost of production of 1 Bitcoin on their site? I see they end up mixing CAPEX with OPEX, but I can agree with the approach at least until we don't reach ROI.
The values are quite different from what I saw in the OP link.

https://insights.braiins.com/en/cost-to-mine/

They are still assuming free gear.

but they are accurate if your gear is free.

Most every calculator has fails

Think that their method is missing the cost to buy the gear..
think that their power price includes repairs, labor , infrastructure.

then they are accurate.

I like to add a penny or 2 to the power cost to cover all bs other than gear cost.

so if you have 3 cent power bill and a cent or 2 and your running cost is 4-5 cents.

that cover everything but the purchase price.

now 1000 ph is 10 s19's. cost is 4000  if you get them now times 10 = so 40k in the hole.

1000 ph of s19's burns 10 x 3.3kwatts or 33kwatts an hour or  792 k-watts a day lets say 800k-watts daily

at 5 cent complete run  cost that is 40 usd
at 10 cent complete run cost that is 80 usd

1000 ph earns $93.80

so at 5 cent run cost you make 93.80-40 = $53.80
and at 10 cent run cost you make 93.80-80 = $13.80 a day

so both look like winners. well do not forget the 40,000 you spent for the gear.

so 40,000/53.80 = 743 days to pay the gear off and yet to earn any profit at 5 cent full run cost which is about 3 -4 cent power rest for things i mentioned above.

worse 40,000/13.80 = 2898 days to pay the gear = no good at all.



and that is top end gear grabbed cheaply with 3 cent to 4 cent power round up to 5 cents total run cost.

So right now mineing is terrible unless you have paid off gear.

the braiins site is not making that clear.

[darkv0rt3x]

Allow me some clarifications

think that their power price includes repairs, labor , infrastructure.

Why do you say this?

I like to add a penny or 2 to the power cost to cover all bs other than gear cost.

so if you have 3 cent power bill and a cent or 2 and your running cost is 4-5 cents.

that cover everything but the purchase price.

Do you meant

so if you have 3 cent power bill add a cent or 2 and your running cost is 4-5 cents.

What is the meaning of "ph"??

now 1000 ph is 10 s19's. cost is 4000  if you get them now times 10 = so 40k in the hole.

What you mean by complete run cost here??

at 5 cent complete run  cost that is 40 usd
at 10 cent complete run cost that is 80 usd

When I know the answers for my questions, I think I can understand the remaining numbers!
Thanks
dkVtX

[a1 Hashrate LLC2022]

Allow me some clarifications

think that their power price includes repairs, labor , infrastructure.

Why do you say this?
At some point if you want run cost repairs labor and infrastructure needs to be accounted for.

they let you plug in a number for power price pretend the power company wants 3 cents a kwatt
I say add 1 -2 cents more and it will cover  the true run cost.

the true run cost is power price and repairs,labor, infrastructure. It varies place to place but 1-2 cents will get you close.

I like to add a penny or 2 to the power cost to cover all bs other than gear cost.

so if you have 3 cent power bill and a cent or 2 and your running cost is 4-5 cents.

that cover everything but the purchase price.

Do you meant

so if you have 3 cent power bill add a cent or 2 and your running cost is 4-5 cents.

yes exactly that.


What is the meaning of "ph"??  t

hat is a typo it is supposed to be th. 1 s19j is 100 th 10 s19j is 1000th

now 1000 ph th  is 10 s19's. cost is 4000  if you get them now times 10 = so 40k in the hole.

What you mean by complete run cost here??

at 5 cent complete run  cost that is 40 usd
at 10 cent complete run cost that is 80 usd

your calculator allows a power number

if power company charges 3 cents I say plug in 5 cents for true run cost.
if power company charges 7 cents I say plug in 10 cents for true run cost.

It varies as some people have really cheap labor and really cheap infrastructure

[/hr]

When I know the answers for my questions, I think I can understand the remaining numbers!
Thanks
dkVtX

I Hope this helps

I live in usa
I like to add 2 cents to my power company price

If I lived in a low cost spot
I would add 1 cent

so power bill 3 cents + 2 in my USA case

but maybe

power bill 3 cents + 1 cent in Malaysia case



All of the above is a way to use the calculator you linked work more accurately .

To me the hardest thing is not calculating run cost.

as I think it is

power from power company
repairs
labor
infrastructure
maybe insurance
maybe breakage and not repairable gear.


The hard thing is once you get that number.  say it is 10 s19j's earn $53.80 a day after full run cost.

 How do I account for that 4000 a unit purchase price 10 s19's cost at best $40,000

[darkv0rt3x]

Thanks, I got the numbers! Really hard to mine if you don't have energy really cheap.

[philipma1957]

Thanks, I got the numbers! Really hard to mine if you don't have energy really cheap.

Yeah cheap power and luck are big factors if you want to mine at 20kwatts an hour or more. 20 watts is around 6 s19's which means it is out of reach for almost every homeowner.

and it is only earning 6 x 100 x 9.4 cents = $56.40 per day.  Before any and all costs.

[goldkingcoiner]

Just came across this, published last month, but don't recall seeing anything like it on the forum, so just sharing.

Original article by 911 Metallurgist, it's got the rates for some other crypto too but I'm just going to share the one for Bitcoin: Cost to mine 1 Bitcoin in every country.



I knew Asia was expensive, but not THAT expensive. Also, I think this is the cost of grid electricity. I know in my part of the world, for example, some miners want to experiment with natural gas generators. Far, far cheaper, no one would plug into the grid!

Kuwait, though!

Interesting. And yet most mining as far as I know comes from Kasachstan? I wonder if there will be a shift soon? I do have a problem with the flimsy methodology on the calculations. Mining costs are not only electricity+miners. They completely ignored internet costs, the renting of mining space, various business and regulatory fees (licenses), etc?

Also, North Korea? Really?   - Oh boy, they did not calculate the most important costs of mining in NK: the costs to smuggle the hardware and yourself in, the bribe money for the soldiers to keep quiet and ultimately the price of a single bullet for one's own execution.  

Anyway, not a serious "study". Just a gimmick with a nice chart.

[mikeywith]

What you guys think about Braiins approach of calculating the cost of production of 1 Bitcoin on their site? I see they end up mixing CAPEX with OPEX, but I can agree with the approach at least until we don't reach ROI.
The values are quite different from what I saw in the OP link.

Almost everyone does the math right, it's really pretty simple, takes a few seconds to calculate, and once you know parameters it just doesn't get easier, it's 5th-grade math at best, but what EVERYONE doesn't have is a crystal ball, if difficulty doubles half way it means only the first half of your bitcoin matches the current figures, the other half will be 2x more difficult which makes the overall calculation off by 50%.

Also, none of the parameters used in the equation is constant, not even the power rate we pay today is guaranteed to be the same next month, so you have an ever-changing difficulty figure, a variable power cost, other unknown costs, all of these models are hardly accurate, you can save today's numbers and look at them a year later, you will laugh at how inaccurate they were.

An example, many people who bought the 17 series when they first landed thought they would recover their investment in 6 months, it has been almost 3 years now, most of them are yet to see ROI (including myself), if you told anyone the same shit back then, they would think you are crazy, if you tell someone today that paying 0.25 BTC for S19 is going to look terrible next year, they will laugh at you.

So long story short, nobody knows how much it will really cost anybody (not even themselves) to mine bitcoin.

[stompix]

What you guys think about Braiins approach of calculating the cost of production of 1 Bitcoin on their site? I see they end up mixing CAPEX with OPEX, but I can agree with the approach at least until we don't reach ROI.

It's a calculator, the only difference is that it shows you how long it will take you and what cost till you mine exactly 1 BTC.
They basically show you how much you pay a day and calculate the revenue in satoshi, unlike traditional profitability calculators (they have one too).

The thing is that you still have to insert the hashrate, the power consumption, the electricity price, things that you know for yourself, but a thing that nobody knows for an entire country, even the price per kWh, let alone the number of different gears. Of course, you could say, I'm in Germany I have 40cents per kWh, I have an S19j it cost me this to mine a BTC but that doesn't make it a rule for the entire country. As I said previously, on those numbers I wouldn't be mining at all.

Oh, something interesting from the previous calculator:

70 ICELAND  $24,294.63  $-2,253.03
71 CANADA   $24,493.76  $-2,452.16
79  CHINA    $25,489.45     $-3,447.85

This is just lol material, 3 countries known for mining would be mining at a loss now.

Interesting. And yet most mining as far as I know comes from Kasachstan?

Kazakhstan was never ranked number 1, and with current events there I think it will be close to impossible to rank 1 even if we break the US by states.

[goldkingcoiner]

Kazakhstan was never ranked number 1, and with current events there I think it will be close to impossible to rank 1 even if we break the US by states.

I was under the impression that China was proxying its Bitcoin mining to Kasachstan as its nearest neighbor. Maybe I was wrong in thinking that? Or perhaps I was thinking of something else.

I agree with the current events being extremely detrimental to the mining potential in Kasachstan. Not only did they suffer power outages and political conflict with a coup attempt shortly before the start of Russia's war in Ukraine.

I do still have hopes for the potential in Kasachstan.

[Coinfarm ventures]

I'm in Germany I have 40cents per kWh, I have an S19j it cost me this to mine a BTC but that doesn't make it a rule for the entire country.

Even miners within the same region or utility coverage area can have vastly different rates. Some of them can be on a fixed long-term contract for 3-4 cents while others pay public tariff rates of 5-6 cents. The GWh they signed to are already a sunk cost, so the marginal cost of their power is zero. Therefore, these big corp-o-mines will always continue mining even if BTC is $5k. Even if they went bankrupt, some private equity fund would gobble up the entire warehouse for pennies, but the ASICs would keep mining!

[minemyhive]

Thanks, I got the numbers! Really hard to mine if you don't have energy really cheap.

ditto. Mining is essentially exchanging electrical for a digital asset. Therefore, the lower cost the better because the digital asset can yield more.

[Esther C]

Just came across this, published last month, but don't recall seeing anything like it on the forum, so just sharing.

Original article by 911 Metallurgist, it's got the rates for some other crypto too but I'm just going to share the one for Bitcoin: Cost to mine 1 Bitcoin in every country.

https://z4y6y3m2.rocketcdn.me/blog/wp-content/uploads/2022/06/01_Cost-to-Mine-Cryptocurrencies_Top-10_Most-Least.png

I knew Asia was expensive, but not THAT expensive. Also, I think this is the cost of grid electricity. I know in my part of the world, for example, some miners want to experiment with natural gas generators. Far, far cheaper, no one would plug into the grid!

Kuwait, though!

I'm surprised Nigeria doesn't seem to be on the list of counties that cost the least to mine bitcoin. Considering how much energy Nigeria as a country has. But it could also be that there aren't so many people that mine bitcoin like the other countries.

__

Esther

[GxSTxV]

This is very interesting, I’m wondering how could you or who ever got this informations, you really made me think about mining since i live in the second most less expensive country to mine bitcoin or etherum which is algeria country.
The only problem now is how to get the necessary tools and devices to start mining, since our government is really strict about these devices and most of the time are getting  by customs. And if i got those devices the question is how how much time it will take to mine 1 bitcoin or 1 etherum using the most recent and best device on market.

[vEmpire.dDAO]

How accurate is this info guys - the prices in my county have been raising by the day, soon it is not going to be profitable to mine at all - BTC price low - electricity price sky high every day... soo where do we go from here?
 

[Stringer-0145]

Holy Molly,
Venezuela is expensive as hell