Mining Maximization: Which Countries Thrive on Bitcoin Mining?
Central to the foundation of Bitcoin and other cryptocurrencies is the practice of mining. Mining for Bitcoin is the mechanism that secures the network, enables rewards, and is key to the decentralized ethos of cryptocurrency. Mining adds transactions to the blockchain leger and unlocks new Bitcoin. In short, it makes the whole thing tick.
But mining is not equally optimized in all areas. The efficiency of mining is maximized in the presence of several key factors. Since mining involves computers solving complex mathematical problems, it is best done in areas where electricity is abundant and affordable, where technology is available and where internet connectivity is not a problem. Furthermore, the regulatory environment around Bitcoin mining differs from country to country, and indeed from year to year. Revolutions of this nature seldom unfold according to a precise roadmap.
With that being said, which countries are capitalizing on the Bitcoin bonanza? What are the greatest environments for miners? Let’s take a look.
When it comes to mining Bitcoin and other cryptocurrencies, China truly is the beast from the Far East. Cheap electricity is readily available, with some power companies rumoured to be pointing their excess energy towards Bitcoin mining facilities in order to avoid waste. China is home to many of the world’s biggest mining pools, which consist of large groups of miners who pool resources and share processing power. The abundance of cheap labour and tech savvy individuals only adds to China’s suitability.
On the cautionary side, however, are lingering questions related to the government’s plans related to the sector long-term. Some fear that sweeping regulations could arrive, shaking up the industry in unpredictable ways. As Jehan Chu, managing partner at blockchain investment firm Kenetic says, “I believe China simply wants to reboot the crypto industry into one that they have oversight on, the same approach they took with the internet.” The extent of these regulations, and their eventual effects, will be a tale told by time.
Far away from China, both geographically and politically, sits the small island nation of Iceland. The country’s hydroelectricity and geothermal energy plants create an abundance of affordable energy, prompting an influx of miners, including Genesis Mining. Crypto mining equipment not only requires large amounts of energy, but creates a great deal of heat. Cooling the equipment is necessary, and this, intuitively, can be most easily accomplished in a cooler environment, such as Iceland’s. A strong tech scene, the presence of venture capital, and a friendly regulatory environment make Iceland a favoured location for mining.
The Eastern European nation of Georgia is home to BitFury and other mining farms, punching above its weight on the international scene. Low electricity costs, favourable tax laws and a strong tech scene add incentive for miners. On the flip side, the nation’s proximity to Russia casts some level of doubt over their political stability.
The True North Strong and Free has also become a capital for Bitcoin mining. Hydroelectric plants in Quebec have been particularly attractive sources of energy for miners, although the industry is not exclusive to that region. Many Chinese miners have begun shifting operations to Canada in order to escape their home nation’s regulations and uncertainty. Canada also offers a cool climate and favourable regulatory framework.
The United States offers electricity that is quite affordable relative to some other countries, but the numbers vary state to state, with Louisiana, Idaho, Washington, Tennessee and Arkansas being the most affordable. Mining has been more or less unregulated, although there has been some level of confusion regarding legal framework and future expectations. Regardless, it remains a great place to profit from cryptocurrency mining.
Russia has positioned themselves as a friendly place for Bitcoin mining in an effort to benefit from the boom. Subsidized energy and a cool climate offer further benefits to miners.
Venezuela has been a favourite location for Bitcoin miners, thanks largely to dirt cheap energy prices. Recently, political instability and social upheaval have affected nearly almost all aspects of life in the South American nation, and mining is no different. Hyperinflation has prompted many to place their faith in Bitcoin, and the government has even launched its own cryptocurrency, the Petro, although critics remain skeptical of that currency’s usage and future.
Whether you’re in one of the aforementioned countries, or elsewhere in the world, Bitcoin mining remains a viable source of earning, and a real opportunity. Talk to us today to learn more about our fully customizable and easy to set up crypto mining facilities and begin capitalizing today!