Yes, it’s true. Venezuela is not only a country on the northern coast of South America with diverse natural attractions, but it is also a country where you are able to mine one bitcoin for less than 600 USD. At least theoretically.
BTC mining profitability is based on various factors, but one of the main ones is the price of electricity, which varies widely from country to country. The lower the cost, the more profitable it becomes to mine.
Bitcoin Miner Paradise?
Venezuela has one of the lowest electricity rates in the world.
At $0.002 that’s less than a penny per kWh. As an example, people in the U.S pay about 12 cents per kilowatt-hour. In Europe, it can range from 9.6 cents kWh in Bulgaria, 30.5 cents in Denmark and Germany.
Before you start packing your bags, it should be well noted that Venezuela has not exactly been “very welcoming” to bitcoin miners in general. There have been various reports of miners being sent to jail with fabricated charges against them. One of which occurred back in 2017 where the Penal and Criminal Investigations (CICPC) dismantled a bitcoin mining farm with more than 11,000 pieces of mining equipment.
A combination of dealing with corrupt government officials and security forces in a country with a complete lack of rules of law it becomes an extreme case of high risk, and high reward, to say the least.
The Cost to Mine 1 BTC
While it might be surprising to some, there are plenty of countries in the world that make bitcoin mining a profitable endeavor, even at ultra-low BTC prices of ~$3000.
Ukraine, Uzbekistan, Trinidad, Kuwait, Myanmar, and Belarus will all allow you to mine your bitcoins at ~$2000 a piece. A reasonable profit for the foreseeable future.
China, Canada, Albania, Bangladesh, Egypt, Ethiopia, and India are pretty close to breakeven at around ~$3000-$3500. Not the worst deal in the world when you consider the outliers.
It will cost $26,170 to mine a single bitcoin if you live in South Korea, followed by Niue at an outrageous cost of $17,566. Not much better unless you’re a hardcore believer. In which case it’s still not worth it.
Is it profitable to mine bitcoin? It depends.
With bitcoin mining profitability being so scattered all around the globe. From $531 to $26,170 it truly is a case of being at the right place at the right time.
At least until the next difficulty adjustment that is.