18 January 2021
Blockchain
Is Bitcoin mining profitable?
Is Bitcoin mining profitable?

Have you ever thought what is the net value of 1 Bitcoin? Is mining profitable? The net value of 1 BTC depends on the country, as there are some factors to impact the process.

Bitcoin mining. What is the net value of 1 BTC?
Bitcoin is frequently compared with gold, as both assets have much in common. There is a limited amount of gold and BTC coins; hence, the more assets have been already mined, the higher prices are. Bitcoin mining is still profitable, despite halving. Meantime, the net value of 1 BTC depends on the country.
What is Bitcoin mining?
Mining is the process of adding new transactions into the blockchain. All Bitcoin transactions are primarily fixed in an open log of transactions and then transferred to miners who need to find a suitable hash out of millions of options. Such a task is solved by the special equipment. When the hash is found, the new block would be closed within the Bitcoin network.
That is the algorithm of how does Bitcoin mining work. Furthermore, the process is the only way of new Bitcoins emission. At present, BTC’s circulating supply is 18.564 million BTC, while the total amount of launched coins is 21 million. Hence, 2.5 million more Bitcoins are waiting to be mined.
What does Bitcoin net value consist of?
According to Statista, the total revenue raised from Bitcoin mining dumped from $5.26 to $5 billion in 2019; meanwhile, such a tendency is mostly connected with bearish trends on the crypto market. On the other hand, 98.3% of Bitcoin mining volumes are spread among 15 large BTC pools. The following Bitcoin pools outnumber the sector: F2Pool (17.4% of all annual number of mined blocks), Poolin (15.2%), BTC.com (12.5%), AntPool (11.0%).
These pools place mining powers in different countries, but which factors impact the miners’ choice? Bitcoin net value consists primarily of energy costs and taxes; that’s why expenses for Bitcoin mining may differ essentially. For instance, the price of 1kWh for businesses is $0.082 in Ukraine, while in Germany the price grows to $0.38 per 1kWh (563% higher). Is Bitcoin mining profitable or not – the answer depends on the country.
The best and worst countries for Bitcoin mining
Based on calculations, Bitcoin mining is the most profitable in the following countries:
• Venezuela ($1062 per 1 BTC);
• Trinidad and Tobago ($2360 per one Bitcoin);
• Uzbekistan ($3562);
• Myanmar ($3966);
• Belarus ($3349).
Meanwhile, mining is not widespread in these countries because of economic, geographical, or political reasons. There also appears a question is Bitcoin mining legal there. While talking about top-5 destinations for mining, the following countries are pointed out:
• Georgia ($6632 for one Bitcoin);
• Iceland ($9482);
• Estonia ($11102);
• Canada ($7930);
• Sweden ($9492).
That means, net profit of miners varies from $12 500 to $8 100 per one BTC (taking into account the price of $19 200 per 1 Bitcoin). There are more than 20 countries where Bitcoin mining is unprofitable. The following jurisdictions lead the ranking: South Korea ($52 340 per one mined Bitcoin), Niue ($35 112), and Cook Island ($31 722). As for the European countries, mining is not profitable in Belgium, Denmark, Germany, Ireland, Italy, Portugal, and Spain.
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