How much does it cost to mine 1 bitcoin in Venezuela? Miners refute analysis

Tweet about the value of mining a Bitcoin in Venezuela

Key facts:
  • Electricity in Venezuela has an approximate price of 0.010 KW/h.

  • Bitcoin mining is widely entrenched in the population.

The cost of mining Bitcoin is not a constant. It depends on so many factors that taking a photograph would end up being misleading, because the nature of this activity is chameleon-like. However, some scenarios have more or less stable conditions. For example, the price of electricity service in Venezuela.

The publication of an infographic about the cost of mining 1 bitcoin BTC in different countries of the world caused more than one calculator to turn on early today.

According to this infographic, the cost of mining a bitcoin in Venezuela would exceed USD 240,000 thousand dollars. In countries like Argentina or the United States, the average would remain at USD 21,000. In Paraguay, the cost of mining 1 BTC would be USD 13,000, a figure close to what CriptoNoticias recently reported.

Beyond the fact that this data could be an error, many in the networks commented on his position on Bitcoin mining in Venezuela. Among these, there is the Doctorminer mining pool.

Tweet about the value of mining a Bitcoin in Venezuela
Doctorminer’s answer was probably the right one in terms of numbers. Source: Twitter.

In its response, Doctorminer expresses that mining 1 BTC in Venezuela with a medium generation equipment costs USD 4,736 and with an old equipment USD 9,630.

The price of electricity in Venezuela

If we return to the source of this discord, we learn that the methodology used to calculate the infographic consists of calculating the cost of mining with a medium-performance equipment: the Avalon 124690T. And that electricity prices obtained from the World Bank and Cable.co.uk.

Map of the value of mining Bitcoin in the world with an emphasis on Venezuela
Given the scale of this error, the infographic could lose credibility with those trying to get a sense of the global mining landscape through its data. Source: 911 Metallurgist.

This latter source may have introduced the error. The fact is that, unanimously, the perception of the price of electricity in Venezuela points to its economic price.

As we have reported in the past, in Venezuela the average price of electricity is 0.010 KW/h, as indicated by a Bitcoin miner in an interview with this medium.

Nevertheless, There are communities that report that they have not paid for electricity for years because the infrastructure does not exist., as a former miner commented to CriptoNoticias, who did not want to be identified. In this case, which is common, the service suffers from constant outages, which makes Bitcoin mining difficult.

Another former miner, who also did not want to be identified, agrees with this position. He further adds that the political conditions, the little security that exists in terms of importation, the payment of extortions to the authorities, are factors that cause this activity to be expensive for some people.

In other cases, they contrast the reports on increments in the rate of more than 3,000% since last year. However, this situation does not affect all sectors of the population.

What Bitcoin miners and the community are saying

Several miners from Venezuela expressed that this metric is wrong. “I am a miner in Venezuela and this is inaccurate,” read the comments.

Another person add that, if that infographic only takes into account the price of electricity, “there is no profitable miner in the world today.”

Several people agree with the fact that the profitability provided by low electricity prices in Venezuela allows them to continue using equipment such as the Antminer S9. This, despite its low efficiency, continues to pay dividends in this region.

The fact is that the cost of mining is much more localized, as other users comment. In the same region, it would be cheaper, for example, to mine near power plantsas we have reported in CriptoNoticias.

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