In Algeria, the purchase, sale, use and possession of cryptocurrency is prohibited under the 2018 finance law. Nevertheless, the bitcoin business is making its way there and more and more young people are getting into the lottery.
We will establish in this article the list of the ten most expensive and cheapest African countries for the cryptocurrency miningthen we will see where Algeria is in this ranking…
How does bitcoin mining work?
Before we get to the nitty-gritty, it’s worth briefly explaining the basics of bitcoin mining and why it requires so much energy.
When someone mines bitcoins, they add and verify a new transaction record on the blockchain (the decentralized banking ledger where bitcoins are traded and distributed). To create this new record, cryptocurrency miners must solve a complex equation generated by the blockchain system.
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Tens of thousands of miners are working to crack the same code at the same time. However, only the first person to solve the equation will receive a reward (unless they are part of a pool of miners who agree to combine their efforts to increase their chances of solving the equation). So the more your computing power is fast, the more chances you have of winning. Solving the equation first therefore requires powerful equipment that consumes a lot of energy.
Bitcoin mining – the price of electricity, the criterion par excellence
In the world of cryptocurrencies, it is the price of electricity which makes the difference between profit and loss. Since most individual cryptocurrency players have out-of-industry pricing, miners are looking to countries with cheap electricity to set up shop.
With an average electricity cost of $12,203 per bitcoin, Oceania is the most expensive region in the world for mining. It is followed by South America ($7,150), Europe ($6,695), Asia ($6,378), the Middle East ($6,249) and North America ($5,456). $). With an average cost of electricity of $4626 per BTC, Africa represents the cheapest region for mining.
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Bitcoin miners migrating from state to state consider several factors when deciding where to set up shop. In particular, they consider the legal framework, electricity prices and the overall cost of mining cryptocurrencies.
Besides, here are the 10 cheapest and most expensive African countries to mine bitcoin, according to the specialized site Visual Capitalist.
Top 10 most expensive African countries to mine bitcoin
- Somalia — $82,044.16
- Liberia — $77,663.16
- Seychelles — $63,922.75
- Comoros — $55,957.30
- Cape Verde — $52,372.85
- Djibouti—$52,173.71
- Burkina Faso—$47,394.44
- Ghana—$46,996.17
- Eritrea — $43,610.85
- Kenya—$43,212.58
Top 10 Cheapest African Countries to Mine Bitcoin
- Algeria — $4181.86
- Sudan — $4779.27
- Ethiopia — $7168.91
- Angola—$7368.04
- Zambia — $9160.27
- Tunisia — $15,333.50
- Mozambique—$19,117.08
- Egypt — $19,316.22
- Democratic Republic of Congo — $19,913.63
- Nigeria—$22,303.27
Algeria is the 2nd country in the world where bitcoin mining costs the least.
Thus, thanks to a particularly advantageous electricity price per KWH, Algeria is the African country where bitcoin mining costs the least. Globally, only Kuwait, with a cost of $1,393.95, does better than Algeria. Our country is therefore 2e global. As for the profit that the mining of a single bitcoin can bring in Algeria, the Visual Capitalist estimates it at $15,574.67.
