The cost of electricity is the main expense for the cryptocurrency. Accordingly, the cheaper the electricity is in the country, the more profitable becomes the mining farm.
It should be remembered that a simple comparison of the average cost of electricity across countries does not provide sufficient information on the prospects for mining. First of all, this is due to the different cost of electricity in different regions of one country which can differ by a few times. Especially it concerns large states like Russia, Canada or the USA.
Mining on ASICs
Elite Fixtures published a report a few days ago comparing the cost of electricity for mining 1 BTC in 115 countries. At the same time, the average cost of electricity in different countries and the average energy consumption of the most popular ASICs were used.
As a result, Venezuela proved to be the most profitable country for mining. The extraction of one Bitcoin there will cost only $ 531. However, given the volatile situation in Venezuela the supply of this cheap electricity is not completely guaranteed. The second place in the ranking is taken by Trinidad and Tobago ($ 1190 / BTC) and Uzbekistan ($ 1,790 / BTC).
In general, the majority of "profitable" countries are located either in Asia or in Eastern Europe. On the territory of the former USSR, Uzbekistan, Ukraine ($ 1852 / BTC) and Belarus ($ 2,177 / BTC) were the most profitable countries.
The cost of mining in Russia, the United States and China was quite close: about 4 thousand dollars for Bitcoin. However, it is necessary to take into account that the cost of electricity in different regions of these states can differ by 2 or more times.
The most expensive mining is in South Korea: ($ 26,170 / BTC). That is, the production of Bitcoin is more than twice as expensive as its market value. It is noteworthy that the South Korean Bitcoin market is one of the largest in the world.
PoS-Mining and Farms on Video Cards
In the case of PoS-currencies, for example, OctoinCoin, the profitability of mining primarily depends on the volume of the cryptocurrency on the balance sheet and each algorithm has its own calculation algorithm. The expenditure on energy consumption of the equipment is minimal and in most cases they can be neglected.
However, the profit from PoS-mining is not transcendental. The largest PoS-currencies promise an income of 5% to 20% per annum. However, with the example of OctoinCoin, you can see that the POS method does not dependent on computing power. Moreover, it is immuned to "51% Attack" and remains the most energy-efficient and safe method.
For the cases of mining using video cards it is also difficult to calculate the effect of electricity. First of all, this is due to the fact that tokens that are most profitable for work on the GPU have unstable exchange rates.
However, it is still possible to roughly estimate the cost of electricity for "video mining" in a particular country.
Suppose that we have a farm of 6 video cards (the most popular solution for "home mining"). The graphics cards will use the GTX 1060 (one of the two most profitable cards on the market, but unlike the Radeon RX470 it's actually available on sale). The average income of such a farm will be about 400 dollars a month at the equipment cost of about 3400 dollars.
In Belarus (where electricity tariffs are among the lowest in the world), such a farm will "burn" at electricity costs about $ 50 per month. In Russia, the cost of electricity will average $ 60 per month. But in South Korea someone will have to pay about $ 350 for electricity. So it's better not even to think about mining on the video card.
How can I save money?
The most obvious way to save money is not to pay for consumed electricity. However, trying to steal energy is a very bad idea. This is dangerous, it is considered as a fraught with certain problems with the police (it could even lead to the prison).
The installation of solar panels is absolutely safe but it is extremely expensive. So, a solar battery which would be sufficient to support the work of the above farm will cost about a thousand dollars. That is, with average Russian, Chinese or American electricity tariffs this battery will pay off in more than a year. Providing ASIC by solar panels will almost double the cost of equipment.
Also from time to time from different countries there are periodic statements about subsidies for electricity for miners. They are trying to "saddle" the crypto industry. However, so far there are no real programs like that.