How Much Electricity is Needed to Mine 1 Bitcoin After the 2024 Halving?

The amount of energy required to mine one Bitcoin remains high, increasing costs depending on local electricity prices. On average, mining 1 BTC consumes around 6,400,000 kilowatt-hours (kWh) of electricity. This is equivalent to:

The amount of energy needed to mine one Bitcoin (BTC) remains substantial, varying in cost depending on local electricity prices. Overall, it takes an average of 6,400,000 kilowatt-hours (kWh) to mine 1 BTC.

This is equivalent to:

Bitcoin mining has become increasingly more energy-intensive over time, especially after the 2024 halving, which reduced the mining reward and increased competition. As a result, having cost-efficient electricity is crucial for miners to remain profitable.

After the 2024 halving, the Bitcoin mining reward was halved to 3.125 BTC, leading to more miners remaining in operation despite the reduced payout. Consequently, the mining difficulty level has risen significantly, making it more challenging and energy-intensive to mine BTC.

In 2023, the Bitcoin mining difficulty reached new all-time highs, with an average of 89,471,664,776,971 at the beginning of December. This level of difficulty is expected to increase further in the coming months.

The study used electricity cost data from globalpetrolprices.com (December 2023) and mining hardware efficiency data from the CoinWarz Bitcoin calculator. The average mining electricity consumption was calculated using 8 high-performance mining rigs.

The analysis indicates that having lower electricity costs can provide a competitive advantage in attracting more miners and maximizing bitcoin mining profits within a country. However, it's important to consider the broader economic implications and ensure that host countries are able to benefit from this industry.

Despite offering some of the lowest bitcoin mining costs, Ethiopia may not be fully reaping the benefits of its natural resources. To maximize gains, the country could:

While Ethiopia enjoys some of the lowest mining costs, profitability is not just about electricity prices. The global landscape is shifting as miners relocate to cheaper regions.

The study by Visual Capitalist, based on data from the Center for Economic Policy Research, ranks the top 10 and least profitable countries for bitcoin mining in 2023.

Top 10 Most Profitable Countries for Bitcoin Mining

Top 10 Least Profitable Countries for Bitcoin Mining

As one of the most profitable places in the world to mine bitcoin, thanks to low electricity costs driven by renewable energy sources, Ethiopia must carefully consider whether its cheap energy policies are truly benefiting the country's economy.

To maximize national benefits, the country should consider implementing mining taxes, regulating the industry and ensuring miners reinvest locally. Otherwise, Ethiopia risks missing out on stellar economic opportunities while providing ultra-low-cost energy for external bitcoin profits.

This study used electricity cost data from globalpetrolprices.com (December 2023), as well as mining hardware efficiency data from the CoinWarz Bitcoin calculator. The average mining electricity consumption was calculated using 8 high-performance mining rigs, considering an estimated mining difficulty level of 89,471,664,776,971.

This article was originally published in Visual Capitalist and written by Ananya Manchal.