The cryptocurrency market has been growing tremendously ever since its inception. According to Data Bridge Market Research, the market is anticipated to witness a 5.7% increase at a Compound Annual Growth Rate (CAGR). It can reach an estimated value of USD 196.62 million by 2029. Cryptocurrencies come from a concept called mining. Bitcoin mining can be traced to as far back as 14 years ago. What started as a straightforward operation performed by desktop computers has developed into an industry with several high-tech devices.
Bitcoin Mining
Mining involves creating Bitcoin and other cryptocurrencies and adding transactions to the blockchain. The whole mining process depends on decentralized networks of computers located all over the world to verify and protect blockchains.
The Middle Eastern region is a desirable location for energy-intensive businesses like Bitcoin mining due to the accessibility of low-cost energy. At a monthly energy consumption rate of 143 kWh, mining one Bitcoin (BTC) requires over 266,000 kilowatt-hours (kWh) of power or almost seven years of nonstop operation. Only a few Middle Eastern countries have an atmosphere that is suitable for lucrative BTC mining because of the rising cost of power.
Mining in UAE
We cannot talk about bitcoin mining in the Middle East without mentioning the UAE. In the Middle East, the UAE is the top country for BTC mining. Mining in UAE goes back to late 2021, with the partnership of Phoenix Technology, a local Bitcoin mining company, and Zero Two, the sovereign wealth fund of Abu Dhabi’s digital assets section. Early this year, Zero Two partnered with Marathon Digital, an American public miner, in its second Bitcoin mining collaboration. Currently, according to Mellerud, the UAE’s operational Bitcoin mining capacity, which is mostly focused in Abu Dhabi, is roughly 400 megawatts, or around 4% of the total hash rate of Bitcoin.
Mining in Lebanon
In Lebanon, there are official bans on cryptocurrency trading, although they are not strictly enforced. Notably, mining has been a focus for many cryptocurrencies in the nation. According to a survey by The Underfloor Heating Store, Lebanon has among the lowest power prices in the area, at around $0.002 per kilowatt-hour (kWh). Around $266.02 is the average monthly price of energy in the nation. This cost dynamic makes mining Bitcoin (BTC) in Lebanon very lucrative. Due to the reliable and economical electrical supply, mining operations have become more popular in the Chouf Mountains area.
Mining in Oman
Oman is making tremendous progress in bitcoin mining because of its huge energy surplus and a strong drive to diversify and modernize its economy. Exahertz leads Oman’s bitcoin mining industry. Also, Green Data City contributes significantly to the development of Bitcoin mining in the Middle East. Oman has around 20 MW of operational mining capacity as of September. This comprises the 11 MW and 1.2 MW capacity pilot projects of Exahertz and Green Data City, as well as a few megawatts from unlicensed activities. With a 27.5 J/TH power consumption rate, this 20 MW capacity should produce 0.7 EH/s, giving Oman a 0.2% share of the world’s hashrate.
Takeaways
This article explored Bitcoin mining in the Middle East. Even though Bitcoin mining in the Middle East started fully in 2021, countries have started gaining ground in the mining process. We see that countries like UAE, Oman, and Lebanon have numerous companies contributing their own quota to Bitcoin mining.
