by Liam Kelly
In the same manner that Chinese crypto miners are constantly on the hunt for the cheapest energy supply, Crescent Electric made the search simpler for American miners. By calculating a handful of variables, the energy company ranked Louisiana as the cheapest and Hawaii as the most expensive regarding electricity consumption.
Mining is Still Profitable
Despite the massive warehouses and mining hangars in Mongolia, non-specialists can still make a reasonable profit running a small-scale mining project. There are even a handful of resources that outline the profits for anyone interested in investing in a mining setup.
The cost of validating the massive Bitcoin network and securing the myriad transactions each day, depends, however, on one’s location. The rising value of the cryptocurrency also has a profound effect on the cost of its mining.
In a recent survey conducted by Crescent Electric, they turned headlines away from Asia and refocused them on the United States. Louisiana, in particular.
The pelican state, according to the electricity firm is also home to the cheapest electricity in the US, $3,224, and thus the lowest cost of generating one whole bitcoin.
This figure indicates that it would cost an American miner roughly three thousand dollars to rake in the current $13,361 value of the digital currency. The study was conducted by measuring the wattage needed for the AntMiner S7, the Avalon 6, and the Antminer S9; all of which are brand names for mining rigs. This wattage, coupled with the number of days it takes each rig to generate a coin, is then multiplied by a state’s average electricity rate.
From there Crescent determined that Idaho was the runner-up, followed by Washington state. The most expensive state, at $9,483, was Hawaii.
It should also be clear that there are other hazards attached to such a long-term venture. Before considering bitcoin’s volatility, mining the digital currency can be a fire hazard if not housed in an industrial environment can be a safety issue.