A lot of people around the World have moved from Mining Rigs to Cloud Rigs which charge fees for providing processing power. This is likely to be around 10-12% of the Cryptocurrency you’re likely to get.
A reason people have moved to Cloud Rigs is because Mining Rigs can take up extra electricity costs, which can make a Mining operation very unprofitable. However, the good news for people in South Africa is that Mining is still profitable in South Africa. While electricity costs are not the lowest in the world, they’re still low enough that you can easily make money from mining.
Why Electricity Costs matter?
A GPU takes up power. That power comes from your electricity, and costs you money. If your GPU makes up for it by providing enough processing power for mining Bitcoins which are greater than value than the electricity bill it will produce, you make a profit. If not, you make a loss. This is why you should be very careful when choosing your GPU, and you can read our article about what to consider when choosing your GPU.
Electricity Costs in South Africa
We’ll talk about the rest of the article in terms of US Dollars, since that’s the currency most people’s Crypto Currency will be converted to, first.
The first thing that any miner has to decide is whether to have his own Mining Rig or not. It only makes sense to host your own hardware if you are either able to get free electricity due to some government grant or your electricity cost is less than the average electricity cost globally.
Now, for South Africans, here’s some perspective. The average electricity cost in the US is about 12 centers per KiloWatt-Hour. In China, it’s around 8 cents. In a place like Germany, it’s 35 Cents.
South Africa is bang in the middle of US and China at 10 cents. Considering a normal GPU will be taking up around 1.3 KW at most, that means you should easily be able to make a profit, considering your electricity costs. Unlike people from Germany and Denmark, you should not be relying on Cloud Networks, but on physical hardware which you can buy from anywhere.
This is an opportunity for South Africa, as a whole. With enough electricity, many South Africans can mine Bitcoins and help to make themselves a bit more prosperous. This is an opportunity that not many people are going to get in other nations because the cost of electricity will either be too expensive, or their countries won’t have the network or infrastructure to be able to mine Bitcoins properly.
It makes sense to mine Bitcoins in South Africa, and South Africans should invest in Mining Rigs now to gain maximum advantage. Next time, we’ll look at some AltCoins that are coming up in the world today.