The rising price of electricity is a major problem for players in the Bitcoin mining industry in the United States. The surge in prices is indeed causing a considerable increase in the costs of Bitcoin operations. This reduces the profit margins of miners.
Another fact: the cost of electricity varies from state to state. It is therefore important to know where to mine Bitcoin in the United States.
US Bitcoin Mining: Rising Electricity Costs Means Rising Mining Costs
When it comes to Bitcoin mining in the United States or any other country, we always have to talk about electricity. Indeed, electricity plays an important role in both stages of Bitcoin mining process :
- verification of transactions,
- additions of transactions to the blockchain.
The electricity expenditure required for such mining increases as the Bitcoin network grows. According to the Bitcoin energy consumption index, the network consumes more energy than the entire country of the Philippines.
Electricity cost is a major expense for Bitcoin miners. Thus, the increase in electricity prices has a great impact on Bitcoin mining activities in the United States. Currently it is estimated that bitcoin miners needat least $17,000 to produce one BTC in the United States. Last year, this expense fluctuated between $5,000 and $10,000.
Which State Offers the Cheapest Rate for Mining Bitcoin?
The cost of electricity is more affordable in New Mexico. It is considered the most profitable state for Bitcoin miners. The latter need $16,850 to produce one BTC there, according to the data of the first trimester.
Hawaii, on the other hand, is the country where Bitcoin miners have to pay dearly. Due to its isolated location and dependence on imported oil, the cost of electricity is very high (approximately $114,590).
Due to the skyrocketing cost of electricity, Bitcoin mining in the United States is no longer as profitable. This inevitably impacts the future of this market. To be continued…
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