Analyzing reports on the cost of energy in individual U.S. states, Hawaii is the state where it is less convenient to mine.
U.S. states where crypto mining costs the least
After 2021, in which Bitcoin mining had to endure a ban by China, 2022, with its across-the-board increases in commodity and energy costs, certainly dealt another blow to the expensive business of BTC mining.
Many states, to save energy, are even thinking about banning this activity, as New York State recently proposed, a decision to which the city’s newly elected mayor, Eric Adams, a well-known cryptocurrency supporter, has strongly opposed.
Undoubtedly, however, the problem of the cost of energy and the resulting large energy consumption of mining is challenging for miners, who are often forced to migrate to states where energy is abundant and cheap. Texas and Kazakhstan are examples of this. Or people should find new forms of energy to do their work and join mining pools to try to make it more sustainable.
Energy consumption during cryptocurrency mining reached a record high in January 2022, after a decrease in July 2021.
— Watcher.Guru (@WatcherGuru) July 10, 2022
Since China’s ban on mining, the United States has become the world’s leading reservoir of mining pools and farms, with states such as Texas, Washington, and Louisiana among the favorites precisely because of their low energy cost.
The cost of energy in major states
But clearly, the energy cost is not the same in all 50 states that make up the U.S. In California and Connecticut, you’ll pay 18 to 19 cents per kilowatt-hour, while in Texas, Wyoming, Washington, and Kentucky, you pay less than half that, according to data from the Global Energy Institute.
Fred Thiel, CEO of Marathon Digital Holdings and cryptocurrency mining specialist, predicted that most new mining companies moving into North America will be powered by renewable energy or gas offset by renewable energy credits.
Stephen McKeon, an associate professor of finance at the University of Oregon, states:
“There are two main inputs to production for Bitcoin mining: hardware and energy,” says Stephen McKeon, an associate professor of finance at the University of Oregon. “The hardware can be used anywhere with an internet connection, so the best regions are those with the lowest energy costs. In the U.S. this tends to be regions such as the Pacific Northwest, where renewables such as hydroelectricity are the dominant components in the generation mix.”
Returning to the discussion of the top U.S. states where it is most profitable to mine, Georgia tops the list with $13.143 to mine 1 Bitcoin, followed by Louisiana, Oklahoma, Washington, and Texas.
While Hawaii is the state where this activity is least profitable due to energy costs, with about $54,000 needed to mine a single Bitcoin.