How Does the Price of Electricity in Different Jurisdictions Create a Competitive Advantage for Miners?

Electricity is the single largest operational expense for a Proof-of-Work miner. Miners in jurisdictions with significantly lower electricity costs (e.g. due to subsidized energy or proximity to cheap renewable sources) have a much lower break-even point.

This allows them to remain profitable when the cryptocurrency price drops, forcing competitors with higher energy costs to shut down, thus giving them a major competitive advantage.