The cost of mining a bitcoin changed dramatically after the halving in April, while eight countries with affordable electricity have already banned btc mining.
bitcoin (btc) mining was once a source of income for early individual users, but not since the halving earlier this year, according to a September report. bitcoin-mining-cost/” target=”_blank”>study by nft Night.
People in Ireland, for example, have to spend around $321,112 to mine a single bitcoin. In Iran, the same process would cost around $1,324. Due to energy costs, American miners traded at a 50% loss when bitcoin fell to $57,909 last month. This paradigm developed despite the United States being one of the largest btc mining centers in the world.
btc was based on a proof-of-work consensus model by its pseudonymous creator, Satoshi Nakamoto. This blockchain design means that network participants must commit their computing power to solve complex mathematical problems and earn block rewards.
Block rewards are denominated in bitcoin, allowing new tokens to enter circulation until the fixed btc supply of 21 million is reached.
<img decoding="async" width="1024" height="736" src="https://crypto.news/app/uploads/2024/10/Global-btc-mining-enery-cost-post-halving-1-1024×736.jpg” alt=”bitcoin Halving Upends Global Solo Mining Profitability – 1″/>
bitcoin mining profitability under strict regimes
Coincidentally, bitcoin mining is very profitable in countries where the cryptocurrency was banned. More than 20 Asian countries, including China, an anti-btc nation, have energy pricing systems suitable for bitcoin mining. Five African countries also offer cheaper energy packages, making nations like Ethiopia, Sudan and Libya a target country for Solo and institutional miners.
Meanwhile, high energy tariffs have rattled some European countries and raised the barrier to entry for btc mining. The nft Evening report said that mining one btc in Germany or the United Kingdom could cost five times the spot value of the asset.
The halving, which occurs every four years, changed the $2 billion bitcoin mining business. Nakamoto designed the system to make it difficult for new bitcoin to enter circulation. Every four years, the rewards for mining each btc block are cut in half and miners earn fewer tokens for running energy-intensive computing platforms.
According to the report, the new mining era has encouraged participants to seek out low-energy countries or risk legal reprimand in nations like China.
But not even institutional miners were spared from the change. In May, weeks after the halving, bitcoin miner Stronghold explored the possibility of selling its business as entities adjusted their operations to stay afloat. Rival company Bitfarms has reportedly made plans to acquire Stronghold and consolidate its mining capacity.
