Getting into cryptocurrency is the order of the day but the honest truth is that getting into it is not like putting a $1 into a slot machine; it is expensive.
So if you are living within the borders of the United States, you are going to want to know the best states and the not-so-best states for mining virtual currency.
The southern state of Louisiana is by far, the best state for mining bitcoin with an average cost of $3,224. Behind it comes Idaho, Washington, and the other southern state of Tennessee. On the other hand, the state that has the highest bitcoin mining costs is Arkansas at a cost of $3,505.
Yet, the states of New Hampshire, Massachusetts, Connecticut, Alaska, and Hawaii are at the bottom of the list. Surprisingly, the island of Hawaii has the average cost of $9,483 for a single bitcoin!
This is partly due to the fact that the price of bitcoin has risen exponentially over the past year.
Currently, bitcoin price is at $11,000.
Energy is believed to be made up of over 90% of the total costs for bitcoin generating and that appears to be the foundation for the Crescent Energy’s estimates also.
Again, according to the E.I.A data, Louisiana was the American’s highest consumer of energy but paid significantly lower rates in comparison to the country’s average. Differently, the state of Massachusetts has a low per capita energy consumption in comparison to the other states because of its energy efficiency programs, causing high electricity rates of 20.43 cents/kWh as compared to the national average of 13.30 cents/kWh.
The states of Washington and Hawaii offer comparable contrasts. Even though the former state has low consumption rates and electric rates, Hawaii has average rates of 29.03 cents/kWh.
Washington state has been in a haste to make good on its niceness as a haven for bitcoin miners and raised electricity rates for bitcoin miners at the beginning of 2017.
Those costs, however, can’t hold a candle to the better costs in the Nordic island country of Iceland, where Genesis Mining, a bitcoin mining outfit, has set up business. In an interview, 3 years ago, the company revealed that they had to pay $60 to in order to generate one bitcoin.
China, which accounts for a majority of bitcoin supply, has many mining entrepreneurs located in Sichuan, a province where hydropower is cheap and plentiful. It is likely that bitcoin mining costs are also fairly cheap there
In the meanwhile, researchers and economists have begun calling into question the data points for bitcoin’s estimated energy consumption. Jonathan Koomey, a researcher, and lecturer at Stanford University told CNBC last December that “wild extrapolations” could have real-world consequences. “I would not bet anything on the bitcoin thing driving total electricity demand. It is a tiny, tiny part of all data center electricity use,” he said.
Christian Catalini, a professor at the MIT Sloan School of Management, said it was not possible to make credible claims about energy use “without actual data from miners.”