As the mining on a Bitcoin farming requires a lot of electricity. the price of energy is always at the center of concerns. The average electricity price in the world is 0.160 USD per kWh. The lowest price of electricity is 0.003 USD per kWh (Lebanon) and the highest price is 0.46 USD per kWh (Denmark). Here, we will review the electricity price situation for the Bitcoin farm in detail.
Connection between Bitcoin Farm and electricity consumption
Before we examine the electricity price situation for use in the Bitcoin farm, let’s talk about bitcoin farm and the connection between electricity and Bitcoin. What is bitcoin farm? And what is the connection between Bitcoin Farm and electricity consumption?
A mining farm is a place that brings together computers and servers that mine cryptocurrency independently but in optimal conditions. Mining is the action of validating transactions through the resolution of an algorithm and creating the blocks associated with the blockchain. The goal is to generate sufficient computing power to be selected and to be able to validate network transactions in order to win the reward.
Mining farms are the heart of the network and it is thanks to them that cryptocurrency can function and develop day by day.
Using the Proof of Work algorithm, Bitcoin miners solve mathematical equations called the Proof of Work Puzzle in order to send their messages to the network. A device called ASIC handles this process, which consumes a lot of power from the user. The term ASIC is abbreviated as “Application Specific Integrated Circuit”. As the name of this tool suggests, ASICs are special circuits that are designed to perform specific processes such as performing complex mathematical calculations, image processing, virtual reality, and others. This tool, which is also used as a miner, plays the main role in the process of mining this cryptocurrency.
The performance of ASIC devices is measured by the amount of hash produced and the amount of electricity consumption. To increase the output, the number of chips and their quality increases, and as a result, energy consumption increases. Higher electricity consumption means more heat production, which means we have to use more efficient and larger cooling systems to prevent the device from overheating.
Electricity prices worldwide
The price of electricity is measured in kWh. It is made up of the cost of generating electricity and taxes. Here are the electricity prices in different countries:
1. Electricity prices in Germany
Germany is among the countries with the highest electricity prices in Europe. The average electricity price in Germany in June 2022 was €0.3279 per kilowatt hour, the price increased by €0.0045/kWh, 1.39% since the previous half year.
2. Electricity prices in Austria
The average price of electricity in Austria in June of 2022 was 0.2249€ per kilowatt hour, the price has decreased by 0.0036€/kWh, 1.58% since the last semester. Meanwhile, the average price of electricity excluding taxes in Austria, during this period, was €0.1579 per kilowatt hour, compared to €0.1448/kWh in the previous half-year, i.e., the price of electricity, excluding taxes, increased by 9.05%.
3. Electricity prices in Spain
The average price of electricity in Spain in June 2022 was 0.3071€ per kilowatt hour, the price increased by 0.0255€/kWh, 9.06% since the last semester.
4. Electricity prices in Italy
Italy is one of the countries with the most expensive electricity in Europe. The average price of electricity in Italy in June of 2022 was 0.3115€ per kilowatt hour, the price increased by 0.0755€/kWh, 31.99% since the previous semester.
5. Electricity prices in UK
The cold snap that hited Europe has pushed UK electricity prices to record highs, to 675 pounds per megawatt hour, according to data from Epex Spot.
6. Electricity price in Iran
At present, on average, 1000 Rials are charged for each kilowatt-hour of electricity consumption in Iran. Calculation of electricity rates in bills is considered in a staggered manner. As a result, many people in Iran are engaged in bitcoin mining because the price of electricity is so reasonable.
Here is the table of the top 10 countries with the lowest price of electricity.
And, the top 10 countries with the highest price of electricity.
The power consumption of Bitcoin
According to the Cambridge Bitcoin Electricity Consumption Index (CBECI), it is estimated that Bitcoin currently consumes over 140 terawatt hours of electricity annually. To give an idea of the order of magnitude, it is now more than the consumption of an entire country like Norway. Another comparison made by Visual Capitalist shows that the Bitcoin network is also much more energy intensive than the world’s largest technology companies: ten times more than Google for example.
Of all the countries on the planet for which energy consumption is listed, only 26 consume more energy than the famous virtual currency, the operation of which requires high computing power and therefore very power-hungry computers. To reduce costs, some Bitcoin miners have moved to countries like Iceland and Iran where they can take advantage of cheap geothermal electricity.
It should be noted that there remains uncertainty regarding the actual energy demand of the Bitcoin network, however, analysts currently set the annualized theoretical lower limit at 45 terawatt hours and the upper limit at 490 terawatt hours.
Iran, a Paradise for Miners
As you see above, in terms of electricity prices, Iran has one of the lowest subsidies among countries. In the other hand, Iran has no legal restrictions on mining for people who wish to invest in this field alone; these people can use a legal mining device in a legal farm. Nevertheless, if the purpose of trading and mining is to start a business, the rules will be different.
Mining in Iran is legal, but because of the high power consumption of miner devices, the electricity organization can sue the miner. Iranian first vice president announced in 2018 that digital assets mining would be regulated by executive order, securing the legality of digital currency mining in the country. The mining license must be issued by the Iranian Ministry of Industry, Mining, otherwise mining will be illegal.
Currently, cryptocurrency mining equipment can only be permitted in Iran if a license is obtained from the Ministry of Industry, Mining and Trade and legal commercial and customs procedures are followed; otherwise, legal action will be taken against violators. The use of non-standard and illegal miners is prohibited in Iran.
There are some companies in Iran buying legal miners or renting cryptocurrency farm. Dara Miner is one of them. Established as the first mining platform in Iran, Dara Miner has tried legal ways and provided a suitable platform for mining concluding contracts with 5 legal and large farms of the country.
If you desire to be active in the mining industry and you wish to work in a country with the cheapest price of electricity, do not hesitate to contact Dara Miner for buying a legal miner or renting a legal farm.
To buy a legal ASIC device or rent a legal farm, you can refer to Dara Miner’s website or call 00982188792017.