A recent US study shows that Louisiana is the cheapest American state in which to mine Bitcoin. One of the big downsides to cryptocurrency mining is that it takes a lot of electricity, and power rates are different for every state.

For bitcoin miners across the globe, power costs are a major consideration, which means that mining activity is often correlated with the price of energy. It is estimated that over 70% of the world's total mining activity takes place in China, where electricity is very cheap. However, because China still relies on coal power, this cheap power comes at an environmental cost. Electricity is also relatively inexpensive in Russia and northeastern Europe, as well as in Venezuela, and a lot of mining activity occurs there.

Based on figures documented by Crescent Electric, an electrical supply company, the lowest US mining costs are to be found in Louisiana, where electricity charges are just under ten cents per watt, meaning that the average cost of mining one bitcoin is approximately $3,224. This is in comparison to Hawaii, where the average cost of mining one bitcoin is $9,483

While the cost of mining bitcoin is increasing, recent price rises mean that it is still a profitable pursuit, even in high-cost countries and states.