Ever since Bitcoin came into the mainstream, bitcoin mining has gone through different phases. What initially started as a straightforward task powered by desktop computers has now evolved into a sophisticated industry.
Bitcoin Mining
Bitcoin mining involves generating new bitcoins through the resolution of highly intricate mathematical problems that authenticate transactions within the currency. Upon successful mining, the miner is rewarded with a predetermined amount of bitcoin.
The rising popularity of mining BTC has coincided with an increase in electricity costs, making the activity progressively more expensive.
The process of mining a single Bitcoin requires approximately 266,000 kilowatt-hours (kWh) of electricity. This is about seven years of continuous mining with a monthly energy consumption of 143 kWh. Given the upward trend in electricity expenses, only select nations in the Middle East offer environments conducive to profitable BTC mining.
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Middle Eastern Countries Mining Bitcoin
Sudan
Sudan has remarkably low electricity costs. Its electricity costs about $0.008 per kWh. While the Sudanese central bank has cautioned against the use of cryptocurrencies, concrete laws regarding their usage are yet to be established. The inexpensive electricity rates in the country could potentially render it an attractive location for Bitcoin (BTC) mining endeavors. However, the absence of clear regulatory frameworks may present risks for such activities.
Lebanon
In Lebanon, the country’s regulations officially frown against cryptocurrency trading. However, authorities are not particularly strict on enforcing this regulation. Crypto enthusiasts have shown interest in the concept of Bitcoin mining. CoinGecko research showed that, despite facing economic difficulties, Lebanon has optimal conditions for cryptocurrency enthusiasts who want to dive into Bitcoin mining.
The surge in Bitcoin mining profitability in Lebanon is primarily attributed to its exceptionally low household electricity expenses. According to a report by The Underfloor Heating Store in April, electricity costs in the region are inexpensive, approximately $0.002 per kWh. This is an average annual household power cost of merely $266.20. This electricity price makes Bitcoin (BTC) mining particularly lucrative in the country. Mining operations are particularly profitable in the area around the Chouf Mountains. This area is suitable for mining operations due to the consistent availability of electricity.
Libya
Libya boasts an electricity cost of approximately $0.004 per kWh. Despite the prohibition of crypto mining in the country, it has experienced a significant increase. In 2021, Libyans contributed to mining approximately 0.6% of all Bitcoins worldwide. This was the highest in both the Arab world and Africa. This level of mining activity consumed an estimated 2% of Libya’s total electricity output, equivalent to approximately 0.855 TWh annually.
Iran
According to research conducted by Chainalysis, Bitcoin mining in Iran has been operating at a remarkably extensive scale. Their findings reveal that between 2015 and 2021, Bitcoin mining activities injected over $186 million into Iranian services, with the majority occurring in 2021.
Iran has an average electricity cost of approximately $0.005 per kWh. The country officially acknowledges crypto mining as a legitimate economic endeavor. Furthermore, Iran made history by becoming the first nation to use cryptocurrency in its reserves for conducting international trade. Hence, Bitcoin mining has had a noticeable impact on Iran’s economy, resulting in job creation and increased revenue influx.
Final Words
Bitcoin mining requires a certain amount of electricity costs. Hence, Bitcoin mining is best done in countries with low electricity costs. Middle Eastern countries with these low electricity costs and top the list of countries mining Bitcoin in the region include Iran, Sudan, Lebanon, and Libya.
