For cryptocurrency miners seeking to set up a profitable operation, every kilowatt hour counts. As little as a cent per KWh can make all the difference between a mining farm being viable or infeasible. U.S. bitcoin miners have received a helping hand in choosing where to set up shop thanks to new research that reveals the cheapest states for mining. Top of the list, surprisingly, is Louisiana.
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Great Rates in the Pelican State
Sandwiched between Mississippi and Texas, Louisiana is hardly synonymous with cryptocurrency, or indeed anything tech-related. Miners would do well to give the Pelican State a closer look though for it’s home to some of the cheapest energy rates in the entire country. Research performed by Crescent Electric has identified the five most favorable states for mining, and Louisiana is ahead of the pack.
The average cost of mining one bitcoin in the southeastern U.S. state has been estimated at $3,224, around $280 less than Arkansas, which makes fifth place on the list. In between, in reverse order, come Tennessee, Washington, and Idaho. These differences in price might seem slight, but over the course of a year, the potential profits can quickly stack up. To emphasize the mantra that location is everything, the report has also included the most expensive U.S. states for mining cryptocurrency.
The average cost of mining one bitcoin in across the U.S.
Miners who’ve done their research will already be aware that New Hampshire, Massachusetts, Connecticut, Alaska, and Hawaii are off-limits. In the case of the latter, the average cost of mining one coin has been priced at almost $9,500 – or around three times that of Louisiana. When it comes to scouting out locations for bitcoin mining, entrepreneurs generally seek out plentiful supplies of cheap hydro power. While Louisiana does have one such plant – the Sidney A. Murray Jr. Hydroelectric Station – it is by no means blessed with a wealth of water-generated power.
Mining in the Southeast’s Melting Pot
When it comes to pricing, U.S. utility companies seem to base their rates less on what it costs to generate power and more on what the market can bear. That’s why monied states such as Washington and New Hampshire are ill-suited to bitcoin mining, whereas the relatively impoverished Louisiana is a top pick. The state is best known for its jazz, bohemian vibes, and rich culture, as best exemplified by New Orleans. Louisiana has got soul and spirit in spades. More importantly, from the perspective of bitcoin mining, it’s got a plentiful supply of cheap power.
Why do you think there’s so much disparity in energy costs from state to state? Let us know in the comments section below.
Images courtesy of Shutterstock, and Crescent Electric.
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