While most cryptocurrency investors are eager to buy Bitcoin via exchanges, those more technically inclined can get the cryptocurrency for dramatically less than the current exchange rate: they just need to mine.
To be sure, Bitcoin mining isn’t glamorous, but for the people willing to put in the work (dedicating a computer’s power to run a transaction validating software app, which helps police the system), there can be rewards.
Mining a coin takes time, though. And computer crunching takes a lot of power. Since power rates are different throughout the country, it’s notable cheaper in some states to mine a bitcoin than it is in others.
Crescent Electric studied mining costs based on the wattage used by the three most popular mining rigs (the AntMiner S9, the AntMinerS7 and the Avalon 6) and the days each takes to mine a coin (which range from 452 to over 1,800 depending on the machine), then multiplied by the average electricity rate in each state.
As it turned out, Louisiana is the least expensive state for bitcoin miners. The state average of 9.87 cents per watt puts the average cost of mining at $3,224 per Bitcoin – substantially less than the over $15,000 the cryptocurrency is currently trading at on the open market.
Where else in the US is it cheap to mine?
In their study, CESCO also estimated the cost of Bitcoin mining based on the wattage consumption of the three most popular mining rigs, namely, the AntMiner S9, the AntMiner S7, and the Avalon 6, as well as the average days each rig takes to mine a token. These figures were then multiplied by the average electricity rate in each state.
Aside from Louisiana, the other top five states with the lowest cost to mine Bitcoin are:
- Idaho – Average cost for one coin: $3,289
- Washington – Average cost for one coin: $3,309
- Tennessee – Average cost for one coin: $3,443
- Arkansas – Average cost for one coin: $3,505
The study also names the most expensive states for digital currency mining. The list of costliest states is led by Hawaii, which takes an average mining cost of $9,483 per coin.
Rounding up the top five states with the highest Bitcoin mining rates are
- Alaska – Average cost for one coin: $7,059
- Connecticut – Average cost for one coin: $6,951
- Massachusetts – Average cost for one coin: $6,674
- New Hampshire – Average cost for one coin: $6,425
The growing interest in cryptocurrency has been accompanied by growing concern over the energy required to mine crypto, namely Bitcoin. Such claims have been recently countered, as a report came out claiming that put cryptocurrency mining in the larger context of energy consumption.