This is a question for Bitcoin miners. High cost of electricity can really cut down on the profitability of Bitcoin mining. I want to know what geographic location has the cheapest electricity and thus most profitable Bitcoin mining in the world?

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    vote to close -- close to off topic and answerable with a single web search – lemonginger Sep 11 '11 at 16:18
  • Or the question could be refined to what factors should be considered when determining a geographic location when concerned with the profitability of mining. – Justin Weeks Sep 11 '11 at 21:54

According to the EIA: http://www.eia.gov/emeu/international/elecprih.html

The cheapest electricity prices from their available data would be Kazakhstan at .052USD/kWh.

Although electricity cost itself would not be the only determining factor of profitability, it would be a major part.

Currently FPGA's seem to be the answer for best performance/kWh. Some other factors to think about would be(not 100% inclusive of all the factors):

  1. Difficulty in sourcing equipment to the country of choice.
  2. Governmental taxes
  3. Employee Cost
  4. Weather Conditions(HVAC)
  5. Government stability (Politics in General)
  6. Ability of the power distribution network to handle your load.

I would say any place electric heating is in use. Computers are just as efficient at heating as electric heaters are, so the Bitcoins are effectively mined for free, as far as the cost of electricity and cooling goes, the two biggest costs. (You still have the cost, and depreciation, of hardware, of course.)

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    @Lohoris What do you think a computer produces if not heat? – Jan Sep 11 '11 at 20:03
  • The Watts of heat emitted by a computer just feel less hot than the same number of Watts emitted by a heater ;-) – Neil Bartlett Sep 11 '11 at 21:01
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    @Lohoris: unless the system stores or transfers the energy somehow, each joule of used energy ends up as waste heat. It is a consequence of the law of conservation of energy. A computing or heating system that consumes 1000 watt of power produce the same amount of heat: 1000 joules per second. – user220 Sep 11 '11 at 22:52
  • @Lohoris please tell me you were kidding. It is impossible for a computer to not produce the same amount of heat as any other resistive load. – DeathAndTaxes Oct 16 '11 at 4:58
  • This is only true if you use electric heaters. This assumes that mining is the most efficient way to heat a home. This answer may not be correct for 2 reasons: 1) How do you efficiently use the heat? 2) Electricity in not necessarily the most efficient source of heat energy. In some places, a gas heater is 10 times as cost effective as an electric heater. – B Seven Sep 28 '12 at 14:53

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