Is bitcoin mining profitable? It is the first question in the mind of every novice entrepreneur trying to make some money through bitcoins? However, the answer to the question may surprise a lot of people and it is yes! And no! Yes, for the people living in areas where electricity prices are cheap and there is no tax on mining bitcoins and yes for all the other countries. A simple rule for mining profitability is that the costs of mining one bitcoin, including the electricity prices, the price of the gear and all of the taxes should be less than the price of an actual bitcoin.
Let us just look at a few numbers, currently, the price of one bitcoin is around 8000 $, and anything under 8000 $ for mining would be a profitable venture. A company name Elite Fixtures calculated the price of bitcoin mining in countries all over the world. There were countries like Trinidad and Tobago, with the prices as low as 1190$ to mine a single bitcoin generating a profit of around 7000$ for each bitcoin. Belarus and Bangladesh were also part of the list of countries that had extremely low prices for bitcoin mining.
The study shows that countries that are rich in resources such as hydro-power, as well as oil were the countries with considerably low prices of bitcoin mining. On the other spectrum were countries with outrageous prices for mining, for example, Belgium (13,842$), South Korea (26,170$) and Marshall Island (15,861$). The countries that showed high prices for bitcoin mining were countries with limited energy resources and some of the countries were places where bitcoin mining is taxed to generally discourage people from mining bitcoin.
Many of the countries have been trying for a long time to stop people from mining bitcoin as it puts unnecessary strain on the energy grid, the Iranian government has been campaigning against such miners who have been taking advantage of the cheap prices and putting a strain on the local grid.
However, things may look like in different countries, bitcoin mining is becoming increasingly profitable in more and more countries, and with the increase in the price expected to happen after the halving event, it may even become profitable in countries where it is very far from profitability. If you want to mine bitcoin and live in a country with low prices, Congratulations! And if you don’t, strap on my friend you’ll have your turn soon.