Bitcoin mining is te an attractive way to get bitcoins for those looking to get te on the cryptocurrency craze. But it is not cheap. Numerous reports have documented the skyrocketing energy costs required for mining. (See also: Do Bitcoin Mining Energy Costs Influence Its Price?)
A report by Crescent Electrified Supply Co. has a different take on the matter. The report ranks the five best and worst states for mining, based on costs. With an average cost of $Trio,224 vanaf bitcoin, Louisiana is the cheapest state for bitcoin mining. Idaho, Washington, and Tennessee are next three cheapest states, and Arkansas – which boasts average costs of $Three,505 vanaf bitcoin – rounds out the top five.
Meantime, Fresh Hampshire, Massachusetts, Connecticut, Alaska, and Hawaii bring up the rear of the list. Te fact, Hawaii has average costs of $9,483 vanaf bitcoin. Given that the price of a single bitcoin has slok up by more than 800 procent overheen the past one year, those costs might still result ter a clean profit.
Spil of this writing, a single bitcoin wasgoed trading at $Ten,488.38.
A Case Of Energy Costs?
Energy is said to comprise more than 90 procent of overall costs for bitcoin mining and that seems to have bot the voet for Crescent Energy’s estimates spil well.
According to EIA gegevens, Louisiana wasgoed the nation’s highest energy consumer but paid significantly lower rates spil compared to the national average. Ter tegenstelling, Massachusetts has a low vanaf capita energy consumption spil compared to other states due to its energy efficiency programs. This has resulted te high electric current rates of 20.43 cents vanaf kWh spil compared to the national average of 13.30 cents vanaf kWh.
Washington and Hawaii suggest similar contrasts. While the Pacific Northwest state has low consumption and electrified rates, Hawaii has average rates of 29.03 cents vanaf kWh. Washington has bot quick to capitalize on its appeal spil a destination for bitcoin miners and raised tens unit rates for bitcoin miners at the commence of 2018.
Those costs, however, pallid ter comparison to the costs te Iceland, where Genesis Mining – a bitcoin mining uitrusting – has set up shop. Ter a 2015 vraaggesprek, Genesis disclosed that it cost them $60 to mine a single bitcoin.
China, which accounts for a majority of bitcoin supply, has many mining entrepreneurs located ter Sichuan, a province where hydropower is cheap and plentiful. It is likely that bitcoin mining costs are also fairly cheap there. (See also: Is Bitcoin Mining Still Profitable?)
Or Maybe Not
Ter the meantime, researchers and economists have begun calling into question the gegevens points for bitcoin’s estimated energy consumption. Jonathan Koomey, a researcher and lecturer at Stanford University, told CNBC last December that “wild extrapolations” could have real-world consequences. “I would not bet anything on the bitcoin thing driving total electro-therapy request. It is a little, lil’ part of all gegevens center tens unit use,” he said.
Christian Catalini, a professor at the MIT Sloan Schoolgebouw of Management, said it wasgoed not possible to make credible claims about energy use “without actual gegevens from miners.”
Investing ter cryptocurrencies and other Initial Coin Offerings (“ICOs”) is very risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest ter cryptocurrencies or other ICOs. Since each individual’s situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties spil to the accuracy or timeliness of the information contained herein. Spil of the date this article wasgoed written, the author possesses 0.001 bitcoin.