The Cost of Mining Bitcoin

every day we have seen articles that specularly we are back coin is going to go does article saying is going to show up in place this article seen that's going to go down to zero and it will be worthless but why I would like to do in this video is talk about the cost of mining Bitcoin I came across that son photographic and don't take that too seriously because the son for graphic doesn't really give you any information it doesn't tell you when that's was created it doesn't tell you death the difficulty of label it doesn't tell you the electricity rate that they use for each country but I don't think about an interesting talking point so there's a lot of a different countries lust heat here and thus as the course the main one back coin based on the average electricity repair country but it doesn't see what the average fee is for each country and it doesn't see the difficulty level now that's important because when the price of Bitcoin goes down and the difficulty will just people pillow of the race so to speak but yeah let's forget and just let's look at some of the values here you can see that most of Europe here you've got island here at eleven thousand dollars you've got Spain at eleven thousand Sweden is actually doing at 4746 so Etzel endures it's you know clean run between it seven thousand four hundred eighty four if it's Singapore the at 5900 Serbia only three thousand one hundred thirty three dollars now as important to remember that right now when I record this for the old back coin is setting just a lot of over three thousand five hundred dollars what that means that it means that anyone who as a country we are the the cost of mining back coin is less than $3,500 they should in theory be mining but everybody rained one year ago when back coin was at the twenty thousand dollar mark and you know what twenty thousand dollars pretty much every country here should be main in back coin and even you know countries with its seventeen thousand dollars Germany they're at $14,000 and Denmark fourteen thousand dollars there's a lot of other countries like that with very high electricity rates South Korea $26,000 Wow there must be a ridiculous for the electricity and know when you're on a bill run and Bitcoin is very high what the electricity does is just simply change how much someone mix from maining Bitcoin and you can see here Belgium $13,000 but someone in Belarus won't wanna be paying two thousand one hundred seventy seven dollars and those countries aren't too far away from each other good Bangladesh stood at two thousand three hundred seventy nine dollars after we assume that these places are correct forgetting about difficulty and all that every assumed that those places are correct and we assume that you know the the place of backgrounds gonna stay at $3,500 for the foreseeable future then you can see that the number of countries real is actually make sense two main back coin is quite limited aim you've got Belarus theta at two thousand one hundred seventy seven dollars so in theory they would make about thirteen hundred dollars there roughly and Bangladesh would make about eleven hundred dollars there from mining one Bitcoin and but most countries they just can't afford aim to main back coin China three thousand one hundred and seventy two dollars and those those guys over in China are leading the way as far as mining goes but you can see there's a lot of cheaper countries they are mined ma I'm former partner just under two thousand dollars they are very very low and look at this Venezuela five hundred and thirty one dollars that is insane so yeah I'll leave a link to this check again don't that doesn't gospel then for graphic doesn't really tell here as far as when it was the redness snapshot was taken and all that but as an interesting talking point and as a constant reminder that when it comes to mining and you have to look at electricity costs and really a kind of as a race to the bottom in many ways if you are and somewhere like United States and well the electricity costs are quite low four thousand seven hundred fifty eight dollars because you know less than half then water as in Europe and by even then right now we're in mechanics tends to Maine and United States and because China they can still make a little bit of money but in United States they can't but what can happen as that when the price drops when the place of Bitcoin drops a lot of people in countries with their remaining previously that we're making a profit the no longer main they switch off the machines and then the difficulty adjust but it's not as black and white is that you know there's always things that can certain all that and but I thought that's what I thought this was interesting to share because a lot of these articles are talking about speculation they're talking about news and all that but from the maining side of things what will maybe see is that people who have that coin main in setups and and particular countries that were profitable before for example the United States what you may see is that those who are serious about mining and they want to continue mining Bitcoin and other coins they may move that operations to another country it could be China it could be somewhere like Belarus or it could be mine ma and they will they want to go to a country where the electricity costs are low and again thus as only a gate um I don't think it's Canada lost it here yeah Canada Ontario three thousand nine hundred sixty five dollars but there's a lot of areas and Canada and again this is the average cost there's a lot of areas in Canada where the electricity rates will be much lower than that that's the average and that takes into account cities and all that but there's a lot of areas around oil-rich areas and gas rich areas with the electricity rates are very low and so it would priming more sense for people in eighty states to probably move operations to Canada rather than China but we'll see what happens aim yeah so when you look at all these articles when you're looking at all the different factors as far as preschools manipulation the news and all these you know there's a lot of crap in the news and you have to kind of you know test regard the vast majority of it to be honest but as important to remember that one of the most influential financial factors as to what the price of Bitcoin as a cell from the mainland side as the cost of mailing and a row effect what happens in the future that's one far but it's certainly a major factor I'll leave a link to this guy's lemon we think I'd love to hear your thoughts on this and you know what this brings to mind I think this is an interesting talking point so yeah leave a comment below and I'll speak to you and the next one cheers guys

3 thoughts on “The Cost of Mining Bitcoin”

  1. The cost of mining is too high right now in every country of the world. And this is so sad to all industry including cloud mining

  2. I can't believe it's cheaper to mine Bitcoin in the United States then Mexico I remember paying around 10 to 15 dollars every 2 months for electricity before I had my rig but I didn't factor in tir 2 and 3 but that's what I get for not doing my reserch hopefully acorn will realse the software soon

  3. They were talking about electricity use in the latest Happy Crypto Friends episode and according to them over 70% of crypto is mined with renewables and at very low cost. ie people finding underutilised hydro and such and moving the crypto farmers to where the cheap electricity is.

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