The cost of mining one Bitcoin in US

READ TIME - 2 min 08 seconds

Author

Daniel Akpobare
May 02, 2023

GM, this is The Crypto Explorer, we don't want to brag, but we think our newsletter is better than sliced bread. Okay, we're totally bragging. 😀

Here’s what we got for you today:

  • 🚀 Bitcoin Mining Costs Skyrocket in the US

  • 💳 Mastercard Partners with Layer 1 Projects!

  • 🧱 Around The Block: Optimism's new token unlock - 49.11% of its M.Cap

🚀 Bitcoin Mining Costs Skyrocket in the US

Bitcoin mining costs have risen significantly in the US.

According to data from Hashrate Index and Luxor, it now costs Bitcoin miners $17,000 to produce one BTC in the US, compared to $5,000-$10,000 a year ago.

The soaring electricity rates across U.S. states are a contributing factor to the rise in Bitcoin mining costs.

Between January 2022 and January 2023, the commercial electricity tariff surged at an average of 10.71% per U.S. state, which is higher than the average Consumer Price Index surge of 6.4%.

  • New Mexico emerged as the cheapest state for Bitcoin miners in Q1 at $16,850 to mint one BTC.

  • Hawaii was the most expensive at around $114,590.

Power cost to produce 1 BTC across U.S. states. Source: EIA/Hashrate Index/Luxor

But all hope is not lost, some US states are trying to help you out.

Arkansas, Montana, Texas, Missouri, Mississippi, etc., have implemented measures to protect crypto miners from excessive taxes and regulations.

And according to the US Energy Information Association (EIA), energy prices could go down, leading to further growth in Bitcoin mining margins.

So hang in there miners!

💳 Mastercard Partners with Layer 1 Projects

Mastercard is partnering with several layer 1 projects such as Solana, Aptos, Polygon, and Avalanche to establish common crypto standards and enhance the verification of blockchain transactions.

The payments giant aims to create the Mastercard Crypto Credential, which will establish:

  • A set of common standards and infrastructure to attest trusted interactions among consumers and businesses using blockchain networks.

  • Provide easy-to-remember aliases to help consumers share wallet addresses, improving the consumer experience and reducing the potential for errors .

  • Bring richer information to blockchain transactions through metadata, helping to define criteria for a wallet to help ensure that transactions are completed as intended.

  • Enhance the verification of digital collectibles, ticketing, and other payment solutions.

This collaboration has the potential to reshape the blockchain industry.

We can't wait to see what's in store.

🧱 Around The Block: Optimism's new Token Unlock - 49.11% of its M.Cap

That's all we have for today.

We'd love your feedback.

In any case, see you tomorrow, or on Twitter, if you're there: @danielakpobare

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research

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