Today we will discuss the profitability of mining in various parts of the world. Frequent occurrence of factors such as strong winds, sea current or sun rays allows for the production of energy without intermediaries, which significantly reduces the return on investment time. On the other hand, renewable energy is not the only cheap energy in the world.
In many countries, the standard of living is so low that no one can afford to use electricity, so its price is adapted to the current situation in the country. An example is Venezuela, which is currently famous for the cheapest oil in the world and hyperinflation caused by systemic changes in the country. The price per kWh in Venezuela is 0.00 USD, so electricity is free! On the other hand, any ordinary bread eater living in this country complains about shortages in delivery. There are, unfortunately, many stories and facts about the detention of digital miners who often performed quite normal professions, such as Ricardo, who was a teacher. The next person was Joel Augusto Padron, who was imprisoned for four months and the equipment confiscated. Just digging Bitcoins is not entirely illegal in Venezuela. The authorities, however, maintain that Bitcoin is only used to finance terrorism. Joel is accused of stealing electricity that is free in Venezuela, laundering money and having contraband. So, as we can see, the profitability of the equipment in Venezuela is at the highest level, however, not crypto mining in this region can be problematic, although it is legal in theory.
Iran is another country worth our attention. The authorities of this country have already convinced of this. After the world moved to Iran to extract BTC, the Iranian ministry issued a special statement in which it informed all miners that they needed a license to verify the blocks in their country. Currently, Iran has granted over 1000 licenses and is one of the countries that have also decided to invest in BTC. The price per kWh in Iran is just 0.01 USD. It is one of the best locations in the world for excavators in terms of profitability. Last year, unfortunately, the Iranian government banned the use of cryptocurrencies as payment methods, thus it could mean that they themselves intend to invest in this sector of the economy, excluding potential competition.
Devices that will be connected in Iran will pay off very quickly. For example, when buying a 420 Ksol / s device that consumes 1500 Watt of electricity for the price of PLN 8000 and paying PLN 45 per month for energy, we will dig around 60 ZCash in a year. The amount for which we sell the currency (current exchange rate ~ 52 USD / item) is close to 13,000 PLN, while the cost of the investment will amount to 8,480 PLN. After a year, when the ZCash exchange rate would stop, we will achieve 35% profit, and each subsequent cryptocurrency will be almost as free 🙂
We chose China as the third global energy power. Energy prices in their power plants vary depending on the season. We distinguish two, dry and rainy seasons. The average range of excavator power hosting services in China is currently from 0.028 to 0.031 USD. Experts predict that due to the rainy season coming in May and June, the price may fall well below this limit, in the past there has been a fall in price even to 0.023 USD / kWh.
For comparison, the average cost of electricity last year in the mountainous provinces of Sichuan and Yunnan in China was around $ 0.035 per kWh. So how do I clarify ROI in a mine in China? I will use the same example as above. If the cost of the device is 8,000 PLN, the monthly energy consumption in Yunnan is 220 PLN. The number of excavated ZCash is the same, so 60 pcs. The amount we receive at the moment for the annual extraction of ZCash is approx. PLN 13,000, while the total investment cost is PLN 9,920, so we will reach 24 in 365 days % of profit.
The fourth country in our ranking will be the representative of Europe, it is Ukraine. It is a relatively large neighboring country that regained its sovereignty and independence in 1991 after the collapse of the USSR. More and more often we hear about data centers that are located in Ukraine. It is one of the countries that has much cheaper energy than other European countries (e.g. in relation to Germany, where 1 kWh costs EUR 0.3085!). Unfortunately, many users of cryptocurrency excavators are afraid to collocate devices with our neighbors, mainly due to the high risk of losing equipment. We remember the events that not so long ago chilled the veins of every European citizen.
Nevertheless, Ukrainian mines are very popular in the last year, when the military moods of both States calmed down. Currently, the country whose capital is Kiev is experiencing a second youth when it comes to cryptocurrency excavators, it is worth taking an interest in this location. How soon will the capital invested back? We will use the same values again. The cost of the device is 8,000 PLN. The monthly cost of energy consumption in Kiev is 160 PLN. The number of excavated ZCash is the same, so 60 pcs. The amount we receive at the moment for the annual extraction of ZCash is about PLN 13,000, while the total investment cost is PLN 10,640, so we will reach 19 % of profit.
Poland is the last country on the list, but not in the world. To illustrate how the prices in the world differ from our domestic prices, we also decided to compare our production. Poland, thanks to the production of energy mainly from sources that produce a horrendous amount of CO2 to the atmosphere, does not have low electricity prices. At the moment, the price ranges between PLN 0.25 and PLN 0.70 per kWh. This is a very big difference, which mainly results from brokering. If we have our own energy sources, i.e. biogas plant, solar farm or wind turbine, the price for electricity is relatively low, while investment in an installation that will allow energy storage and use is relatively expensive.
The payback time for such installations is often several years. Perhaps thanks to the use of cryptocurrency excavators, we will be able to reduce the return on investment time. How is profitability in Poland compared to other countries? The cost of the device is PLN 8,000. The monthly cost of energy consumption in our collocation is PLN 430. The number of excavated ZCash is the same, i.e. 60 pcs. The amount we receive at the moment for the annual extraction of ZCash is about PLN 13,000, while the total investment cost is PLN 13,160, so the time needed for return on investment it’s a little over a year.
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Author: Michał Stryjewski / Unlimited