🌎 Bitcoin Mining Costs Surge Post-Halving Amid Global Bans

The cost of mining one Bitcoin drastically changed after April’s halving, while eight countries with affordable electricity have already banned BTC mining.

Bitcoin Mining Costs Post-Halving

Mining Bitcoin was once highly profitable for early individual adopters. However, this changed significantly after the halving earlier this year, according to a September study by NFT Evening.

For instance, in Ireland, it costs around $321,112 to mine a single Bitcoin. In Iran, the same process costs about $1,324. Due to high energy costs, U.S. miners operated at a 50% loss when Bitcoin dropped to $57,909 last month. This scenario unfolded despite the United States being one of the largest BTC mining hubs globally.

The Proof-of-Work Model

Bitcoin is built upon a proof-of-work consensus model created by its pseudonymous founder, Satoshi Nakamoto. This blockchain design requires network participants to commit computing power to solve complex mathematical problems and earn block rewards.

The block rewards are denominated in Bitcoin, allowing new tokens to enter circulation until BTC’s fixed supply of 21 million is achieved.

Global BTC Mining Energy Costs

Bitcoin mining remains highly profitable in countries where the cryptocurrency is banned. Over 20 Asian countries, including China, have energy pricing systems suitable for Bitcoin mining. Five African countries also offer cheaper power packages, making nations like Ethiopia, Sudan, and Libya attractive for both solo and institutional miners.

Meanwhile, high-energy tariffs have raised the BTC mining entry barrier in some European countries. The NFT Evening report highlighted that mining one BTC in Germany or the U.K. could cost five times the asset’s spot value.

Impact of the Halving

The halving event, which occurs every four years, significantly affected the $2 billion Bitcoin mining industry. Nakamoto designed the system to make it increasingly difficult for new Bitcoin to enter circulation. Every four years, the rewards for mining each BTC block are halved, resulting in fewer tokens for running energy-intensive computer rigs.

This new mining era has encouraged participants to seek low-energy countries or risk legal reprimand in nations like China. Even institutional miners were not spared from the changes. In May, weeks after the halving, Bitcoin miner Stronghold considered selling its business as entities adjusted operations to remain viable. Rival company Bitfarms reportedly planned to acquire Stronghold to consolidate its mining capacity.