Home Bitcoin mining still profitable in parts of Latin America

In 2023, Bitcoin has seen a resurgence, with its value surging nearly 60% since December 2022, though it remains 61% below its peak price of US$67,734.04.

Nevertheless, domestic mining of this leading cryptocurrency is still a viable endeavor due to the affordable energy costs in certain Latin American countries.

Data aggregator Coingecko suggests that on average, an individual miner requires about 266,000 kilowatt-hours (kWh) to mine one bitcoin, taking around seven years at a monthly consumption rate of 143 kWh.

Using energy cost data up to December 2022, Coingecko estimated the mining costs across various countries.

As of August 23, 2023, one bitcoin is valued at US$26,592.

In the following Latin American countries, mining costs are below this price:

• Cuba: US$7,989
• Argentina: US$9,040
• Venezuela: US$12,240
• Paraguay: US$14,630

While the energy costs referenced are as of December, the significant profit margin indicates that with Bitcoin priced near US$27,000, mining remains profitable in these countries.

In contrast, Mexico’s energy cost for mining one bitcoin (US$26,340) is nearly equal to its value, making it less appealing.

Similarly, Ecuador’s mining cost stands at US$25,540 per bitcoin.

On the higher end, Uruguay’s energy cost is US$67,300 per mined bitcoin, suggesting mining might not be profitable there, even if Bitcoin’s price surges.

Mining costs in other Latin American economies as of December 2022 were:

• Chile: US$49,210
• Colombia: US$47,610
• Brazil: US$45,490
• Dominican Republic: US$32,720

Globally, some of the most affordable countries for mining include Lebanon at US$266.02 per bitcoin, followed by Iran, Syria, and others, with costs ranging from US$532.04 to US$4,256.33, as per Coingecko’s data.

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