The extraction of cryptocurrency, in particular Bitcoin, consumes a lot of electricity. And these expenses, undoubtedly, are taken into account when calculating the profitability of mining. Experts have studied the market situation and found out where it is more expensive and cheaper to extract crypto currency.
The cost of electricity in different countries depends on a number of factors, including government subsidies and the availability of natural resources. The same factors affect the profitability of the business by mining Bitcoin, since a large amount of electricity is being spent in the process of extracting crypto currency. So, the Bitmain Antminer S9 Miner in the process of mining consumes 1350 watts – the same as a hair dryer at maximum power.
According to Elite Fixtures and Bitcoinist, the most unprofitable for cryptocurrencies is the Oceania region, which includes an accumulation of islands in the central and western Pacific. One Bitcoin will cost $12,203. It is followed by South America with $7,150, Europe with $6,695, Asia with $6,378, the Middle East with $6,249, North America with $5,456 and Africa with $4,626.
In its calculations, the company relied on data provided by governments and utilities of different countries, as well as on the data of the IEA, the international energy agency.
The most expensive mining of Bitcoins costs are incurred by South Koreans ($26,170), Bahrain ($16,773), Germany ($14,275). Despite the fact that Korea is the most expensive country for mining, Seoul is considered the main driver of the cryptocurrency market.
The cheapest Bitcoin is mined in Venezuela (an average of $531 for 1 Bitcoin), Trinidad and Tobago ($1,190), and Uzbekistan ($1,988). In Russia, the mining of one Bitcoin costs $4,675.
Though the crypto market is still relatively new and lacks many of the traditional institutions of a civilized market, there are projects on the market that seek to indemnify or mitigate the associated risks that investors take when deciding to invest in projects. Cryptics is one such project that seeks to offer the necessary instruments for alleviating the situation with uncertainty. The concept behind it is to support market participants by providing liquidity on exchanges and a safety cushion for retail investors by creating a platform that connects market players and develops algorithms to predict changes in the value of cryptocurrencies. Such instruments based on highly advanced scoring models involving machine learning and AI are incomparable with human intuition that even the luckiest and most prudent investors could ever be endowed with. The multitude of factors involved in predicting a cryptocurrencys rise or fall are all taken into account by the algorithms that Cryptics employs. Investors should consult such projects as the expense is well worth the ensured profit and peace of mind.