Bitcoin Mining’s Electricity Costs is Hugely Expensive: US$500 million upwards

Source: Digiconomist, Oct 2017

According to Quartz the employees estimated that each 1,000 miners were equal to 10 petahashes per second in processing power. All 21,000 Bitcoin mining machines together would then be equal to 210 petahashes per second in processing power. At the time, the total Bitcoin network processing power was 6 exahashes per second, hence we find that the Inner Mongolia mine represents close to 3.5% of the total network. Since the Bitcoin price around this time was $3,500 per BTC, and rapidly going up, these Bitcoin mining machines alone were already generating almost $250,000 per day (based on a total daily block reward of 1,800 coins, and 200 coins in fees).

The total daily electricity bill amounts to roughly $39,000, meaning the facility consumes around 40 megawatts of electricity per hour.

the Inner Mongolia mine made up only 3.5% of the total Bitcoin network at the start of August (the network has expanded significantly since).

Related Resources:

1. CoinTelegraph, Oct 2017 <about US$2.5 billion>

At that time, it cost an average of $150,000 a day to maintain the Bitcoin network. Today, this figure is at a staggering $6.7 million (if we assume a $0.12/watt cost and multiply that with the estimated 56,209,833 KWh of electricity that the Bitcoin network consumed on Oct. 13, 2017).

2.  Digiconomist, Oct 2017

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