Why is the cost of electricity so important for mining in 2020?

Today, the cost of electricity is one of the most important indicators that determine the profitability of bitcoin mining along with the equipment capacity. Simply put, the cheaper the miner costs electricity today, the more profitable mining is.

In part, it can be explained by a decrease in the efficiency growth rate of new ASIC miners generations, together with the consequences of the halving, as a result of which the reward for mining the block has been halved and now stands at 6.25 BTC.

At the emergence of ASIC mining, the equipment was actively improved. In fact, each new generation of devices was two or three times more effective than the previous one. This trend began to weaken only in 2017, when new miners preserve the advantages compared to devices of the previous generation, but the difference in their efficiency was not as radical as before.

Why is the reduction of mining costs gives an opportunity to get profits in 2020? The complexity of mining and competition is growing every year. And the cost of electricity is a key factor that can seriously affect the situation, because the main feature of BTC mining is that the algorithm does not depend on the cost of the coin.

Why is the reduction of mining costs gives an opportunity to get profits in 2020? The complexity of mining and competition is growing every year. And the cost of electricity is a key factor that can seriously affect the situation, because the main feature of BTC mining is that the algorithm does not depend on the cost of the coin. It contains the number of coins received by miners in the form of a reward for each mined block and, if you have good equipment and low operating costs, it means, firstly, that you will get more income, and secondly, that you can stay in the market longer and, therefore, claim a share that will be released after the moment when your less efficient competitors will disconnect the equipment.

One of the most efficient and profitable miners today is ASIC Antminer T17. This model appeared on the market at the end of 2019 and has already received recognition from miners. The 64 TH/s version is a bit inferior to the latest Antminer S17 Pro model. But T17 is not so cost-effective - 2750 watts with a power of 55 Th/s, so the cost of the “outlet” plays a key role in calculating its profitability.

ECOS is the operator of the free economic zone in Armenia and one of the largest official suppliers of mining equipment. Thanks to long-term relationships with leading manufacturers, we receive the most modern and efficient mining equipment primarily, which allows our customers get the maximum profit.

That is why ECOS mining relies not only on the modern equipment, but also reduces energy costs as much as possible. Our capacities is located on the territory of the Hrazdan power plant and we have the access to preferential energy tariffs (the company has reserved about 50 megawatts of electricity with the possibility of increasing the consumption to 200 megawatts).