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As Bitcoin (BTC) and Ethereum (ETH) continue to dominate headlines, the cryptocurrency mining industry has reportedly flourished in the U.S. and Canada. 

Once the domain of Chinese enterprises, the West has supplanted China as the global mining center after the Chinese government cracked down on the industry. North American miners now account for over half of the total global Bitcoin hashrate — a measure of mining power.

One advanced ASIC, the Antminer S19, operates at 3,000 watts. For reference, that’s the equivalent of running three clothes dryers or 10 food blenders. But unlike a blender or a dryer, ASICs are designed to run continuously. Running one for an entire year uses roughly twice as much electricity as the average American household uses in the same period.

Power is one of the most important considerations in a mining operation’s profitability. Miners are always looking to locate their operations in areas where they can access dirt-cheap electricity. The lower the electricity cost, the higher the profit margins.

Just as important as the cost of the electricity is the efficiency of the machine. It’s better (but probably less fun) to pay $5 for a gallon of gas if your car gets 100 miles to the gallon than to pay $1 a gallon to fill up your Bugatti Chiron that gets just 11 miles per gallon. 

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.