Mining 1 bitcoin in Paraguay costs much less than in the U.S.
RIO DE JANEIRO, BRAZIL – Bitcoin mining in Latin American countries such as Paraguay is cheaper than in any U.S. state. The comparison arose after an infographic was released that suggests how much it costs to mine 1 bitcoin (BTC) in the North American country.
Fernando Grijalba, a Bitcoin miner and business developer at Braiins, a mining company, tweeted a seemingly innocent response about the cost of mining Bitcoin in Paraguay.
According to the platform’s cost calculator, mining 1 (BTC) in Paraguay costs US$11,019, with “100% green energy”, he adds.
Read also: Check out our coverage on Paraguay
In communication with CriptoNoticias, Grijalba points out that he “simply” entered the cost of electricity service in Paraguay into the tool, which is US$0.033 per kWh. He also clarifies that he himself maintains Bitcoin mining operations in that country.
If we look in detail at the infographic that began to circulate on networks, the costs of mining 1BTC in the 10 U.S. states where cheaper electricity service exceeds what the same activity could cost in Paraguay.
According to the source, mining 1 BTC in Georgia costs US$13,143, in Louisiana US$14,955, Oklahoma US$15,194, Utah US$16,469, Wyoming US$16,469, Washington US$16,588, and Texas US$16,648. In fact, several of these states are home to some of the largest Bitcoin mining farms in the region.
On the other hand, many other states offer completely opposite conditions, and the cost exceeds the price of bitcoin in the current market, reaching estimated figures of more than US$30,000 for each BTC. In Hawaii, for example, mining 1BTC would cost US$54,862.
The publication offers a brief description of the factors taken into account to make the analysis. Basically, the price of the electrical service and the number of days it would take a mid-performance miner like the 90 TH/s Avalon 1246 to reach that figure.
To explain this difference, Grijalba comments, “for each cent [that is added] to 1MW, consumption goes up by US$7,200, so small differences in cents of electricity are noticeable in production.”
Of course, the costs to mine Bitcoin are actually tied to variables other than electricity. The consumption efficiency of the equipment used, taxes, refrigeration costs and maintenance in general would affect any estimate in this regard.
Paraguay currently concentrates 0.18% of the Bitcoin hash rate and is a profitable activity on the rise.
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