Top Lucrative Countries for Bitcoin Miners
Bitcoin mining is a key process in the overall mechanism of the Bitcoin network and its underlying technology called blockchain. Not only it serves to verify transactions on the system but it is also responsible for the process of generating new coins.
Back in 2009, all it took to participate in the mining business was a regular home computer and an average internet connection. With more and more miners joining in on the action over the years, however, it became evident that more complex and expensive machines will be required.
What’s more, to keep the integrity and attractiveness of the mining process, Satoshi Nakamoto, the anonymous person who created Bitcoin, introduced mining difficulty and mining reward halving.
As you can see in the infographic below composed by Bitcoinfy, the more hashrate power miners contribute, the higher the mining difficulty. This has had numerous consequences on the mining process:
Miners started using much more advanced hardware – the processing power of regular computers and GPUs were no longer able to handle operations. Nowadays, miners use ASICs, despite their massive prices.
Electricity consumption has also gone up because ASICs require much more power than regular home computers. In this regard, the cost of electricity in separate states worldwide has played a major role in determining the top mining locations.
Cooling has become imperative. The advanced mining machines generate a lot of heat. Colder regions, mostly in the northern hemisphere of the globe, are regarded as more suitable choices.
These are just some of the top considerations in today’s Bitcoin mining business. Of course, this does not mean that mining wouldn’t be profitable at all in regions that don’t strictly fulfill these conditions. What we want to say is that most of the regular users are easily put off as soon as they calculate cooling and electricity costs.
In any case, the Bitcoin mining difficulty and its current reward are still relatively appealing. Until May 2020, the network will award successful miners with 12.5 BTC per mined block, after which it will halve to 6.25 BTC.
Top Countries for Bitcoin Miners
Considering that mining is still an attractive endeavor, miners worldwide have largely equipped and prepared themselves for the challenge. The following countries make for the most lucrative mining hubs across the world, specifically due to the considerations listed above.
Studies place Iceland among the top Bitcoin mining countries because of its climate and electricity prices. It is estimated that one Bitcoin could be mined at the cost of $4,647.
Even though Venezuela’s location practically defies what we said about the climate, its low electricity prices are sure to make up for it. The Venezuelan government subsidizes the greater part of the electricity supply for the country, leaving the locals with low bills.
Even if they were to take up mining and employ the necessary cooling tech to battle the heat, a single Bitcoin would still be mined at an estimated cost of $531.
The former Soviet Union member state with its relatively cold climate and the crypto-friendly government is another lucrative country for Bitcoin fans. The cost of mining a single Bitcoin has been estimated at $3,316, and with their tax policy that does not view Bitcoin mining as a taxable practice, nothing is stopping Georgia residents from setting up pools and getting in on the action.
After all, the major BitFury mining pool based in Georgia is the best evidence for this view, with stats showing that it is mining up to 15% of the world’s bitcoins.
Canada is a bit more expensive, requiring $3,965 per mined Bitcoin. Most of its electricity is produced from natural riches, which enables even residents in warmer parts of the country to participate in this activity.
An average of $4,758 is necessary to mine a Bitcoin in the States, although this differs across the country. Its islands definitely have higher expenses, with the practice costing Hawaiians up to $9,483 per coin, for example.
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