It’s undoubtedly true that Bitcoin mining is not as lucrative as in “the good old’ days” when everyone could take part in a couple of hundred dollars-computers, or pretty basic GPUs. Nowadays, Bitcoin mining is a full-scale industrial-level venture that involves great expenses and highly specialized ASIC equipment.
There is a staggering amount of things and aspects one needs to consider before venturing into the wild-west of Bitcoin mining. As mentioned before, there’s a need for an immense amount of computing power for the mining process to be done efficiently and bring a profit. Naturally, these power hungry devices require a ton of electricity in order to do their job.
Hence, the cost of electricity becomes very important in these types of scenarios when determining where to set up a mining project. Not only that but, thanks to their power, these ASIC miners require very efficient cooling in order to operate at full capacity. That’s exactly why we tend to see the world’s largest Bitcoin mining farms in the northern hemisphere where the weather is colder.
This guide aims to serve as a helping resource in finding the best possible countries for Bitcoin mining operations based on all of the factors mentioned above.
For most people, Iceland is this tiny yet very beautiful country that leaves everyone in awe thanks to its amazing views of snow-topped mountains, glacial ice riddled fjords, beautiful waterfalls and fascinating nights, thanks to a phenomenon called Aurora Borealis.
However, not many know that Iceland is, in fact, one of the most popular countries for Bitcoin (and crypto) mining. There are numerous reasons why it is so. Iceland boasts relatively cheap electricity thanks to its efficient hydroelectric and geothermal infrastructure.
The cool climate of Iceland also allows mining businesses to flourish since their operators end up saving a lot of money else spent on hardcore cooling devices. Last but not least, Iceland has very permissive laws in regards to cryptocurrency mining. In 2018, the estimated cost for mining one Bitcoin in Iceland was around $4,700.
Venezuela is a country that has once had the best economy out of all South American countries but is recently struggling with more than just a relentless hyper-inflation hitting as high as 80,000% per year in 2018.
Because electricity is greatly subsidized by the government, the country now has the cheapest electricity costs in the world. To put things into perspective, it’s estimated that mining one Bitcoin in Venezuela typically costs about $500. While the crypto situation is still not 100% clear in Venezuela, its president announced that all activities associated with cryptocurrency mining are legal.
Be that as it may, there are still some complications (both social and political) regarding the crypto situation. Despite the low costs and seemingly permissive laws, importing mining rigs is very difficult.
Often finding itself in the top among other beautiful countries, Canada, often called the “home of lumberjacks, beavers, and Maple syrup”, is a place where natural beauty meets majestic landscapes.
The country is yet another very good alternative for starting a Bitcoin mining business. The main reason is the fact that it boasts fairly inexpensive electricity. Canada also has a very cold climate which means that miners can save a fortune on cooling costs. In order to mine one Bitcoin, you needed to pay somewhere around $4,000 back in 2018. Just like Iceland, Canada has taken great steps to embrace blockchain technology. What’s more, the country does not regulate crypto mining.
It might come as a surprise for most people that Georgian, the very beautiful former Soviet state is, in fact, one of the world’s best places for Bitcoin mining. However, just because of Georgia’s Soviet roots, don’t think that blockchain technology is not present there. For example, Georgia was the first country to implement a blockchain land registry.
It has one of Europe’s lowest electricity costs of around 8c/kWh and a very favorable tax and regulatory stance on cryptocurrency mining. In short, the Georgian law does not recognize mining as a taxable action.
Estonia is a fascinating, little European country that boasts a unique blend of nature, culture, and history. Estonia has recently become a very tech-savvy country, with one of the most favorable stances taken by its government and regulators in regards to blockchain and crypto technology.
Estonia has high-quality Internet access, relatively cheap electricity, and incredibly favorable taxation policies, making it a good place to start a Bitcoin mining business.
Russia is definitely what may seem like a very weird country to include in a list of best countries for Bitcoin mining. However, the truth of the matter is that Russia has been making great strides towards accepting cryptocurrencies and blockchain technology.
Interestingly enough, Russia plans to provide legal, fully-subsidized energy to miners. It’s worth remembering that Russia makes most of its energy from natural sources. The estimated cost of maintaining a Bitcoin in Russia is around $4,675 not too long ago. The country’s cool climate is yet another advantage for Bitcoin mining.
In the current grand scheme of things, Bitcoin mining is not as hot of a subject as it was once. However, it can still be a very profitable opportunity with the proper initial investments and a solid business plan. Any country from the list above is a very good starting place for a Bitcoin mining venture. We wish you all the best!