The easiest way to get Bitcoin is to buy it. This is probably the fastest way to become its owner. Despite this, there are places on Earth where the cost of mining is much more attractive than the cost of purchase. For this reason, a large group of Bitcoin miners are interested in mining in countries where it is not very heavily regulated and energy costs are relatively low.
Who are Bitcoin miners?
Bitcoin cryptocurrency is mined, but not like in the case of coal or gold. Instead of drilling underground tunnels, computers are used for mining. The process of mining cryptocurrencies involves miners (cryptocurrency mining devices) solving mathematical problems. With a positive solution to the task, new blocks are approved and joined to the chain. A block is the place where new coins are issued.
What should be considered before mining?
The profitability of BTC mining is conditioned by:
The cost of electricity. Since mining by excavators requires significant amounts of electricity, the fee per kWh has an impact on profitability.
Internet connection speed. For high-speed Internet access, the machine can dig more blocks.
The climate prevailing in the region. Efficient operation of the machine requires low temperature. In too high, it can overheat. Hence, the low ambient temperature allows you to save money that would have to be invested in additional cooling of devices.
Safety of the area. Since the mine equipment is not the cheapest, it is important that it is located in a safe location.
Regulatory issues. Cryptocurrency mining is not regulated in most countries, but it is worth considering regulatory issues when looking for a country to start mining activities.
In Estonia, great importance is attached to high-speed Internet access. A large amount of money has been allocated to improve the speed of the network. When it comes to regulations, Estonia is considered a country friendly to entrepreneurs wanting to mine Bitcoin. It tries to attract foreign businessmen.
The average cost of electricity for enterprises is not very high,and the average air temperature is 5 degrees. Thanks to this, the cost of walking excavators will not become too burdensome.
The name Iceland can be translated as a land of ice. It is true that it lies close to the Arctic Circle, but it has a temperate climate. The average air temperature is about 1 degree, which is enough to talk about favorable cooling conditions for machines. In Iceland, you can find geothermal energy farms that produce affordable energy. What's more, it is a technologically developed country. Thanks to the fast Internet and favorable conditions, this country has a huge amount of electronic mines and is a good place to locate the mining of a cryptocurrency farm.
Many digital currency mine farms originate from Georgia. The electricity costs there are relatively low, taxes are favorable, and the technology is sufficiently developed. Mountainous air can be cool, although of course it depends on the altitude. As you might expect, summer nights can also be cool in the higher parts of the mountains. What are the downsides of cryptocurrency mining in Georgia? Unfortunately, this is the proximity of Russia and a threat to the stability of the country.
This Middle Eastern country has a very low cost of maintaining economic activity, since it is supported by oil revenues. Hot weather may prove to be a problem, and therefore there is a need to purchase advanced cooling systems. Bitcoin is legal in Kuwait, so it can be safely mined and sold to people from other countries.
Unfortunately, the country has a huge level of inflation. However, Venezuela has favorable conditions for cryptocurrency miners. The local electricity cost is one of the lowest in the world,you should also have no problem finding employees to operate the cryptocurrency farm. Still, you may have some trouble with power outages.
It is the mining capital of Asia, and maybe the whole world. In China, mining capacity can reach up to 66%. What's more, in this country you can find the largest companies producing cryptocurrency miners. The low cost of electricity, the use of alternative and renewable energy sources makes the Chinese miners have an easier task. Some of the miners have placed their farms near traditional coal mines, which gives them preferential energy rates. As the country shifts to green energy sources, it may turn out that the solvency of mining in China will continue to grow.
The advantage of the United States over China is to offer greater security and political stability. To the advantages offered by the USA, you can also add a large amount of land for business activity and low costs of doing business. The actual cost of Bitcoin mining varies depending on the state. The government has not yet prepared a regulation of the digital currency mining market and so far this activity remains legal.
Unfortunately, the country seems to be affected by an economic and political crisis. Despite this, Bitcoin mining is legal and officially recognized as an industrial activity. For this reason, Iran's cryptocurrency mining is booming,especially thanks to low electricity rates. Because of the affordable rates, many miners have decided to migrate to Iran, and the government has created an energy pricing model for cryptocurrency miners.