The 6 Best Countries to Be a Bitcoin Miner
It’s easy to purchase Bitcoin online, and for most people that’s the easiest and fastest way to get cryptocurrency. But in some places around the world, the cost of mining a single Bitcoin is a fraction of the price that the same coin fetches on the open market. That’s driven Bitcoin mining to be one of the world’s fastest growing industries, particularly in countries where cryptocurrencies are lightly regulated and the overhead cost of mining operations is low. Bitcoin mining isn’t easy; like mining for gold, it requires a lot of patience and resources. But if you want to try your hand at it, some countries provide a better opportunity than others. So where should you go to become a successful Bitcoin miner? These six countries offer the best balance of low capital investment per coin and favorable regulatory environments: Kuwait Georgia Iceland Estonia Canada Venezuela To Mine Bitcoin or Buy Bitcoin? In order for a country to be a good potential host for cryptocurrency miners, it has to be cheaper to digitally mine BTC than to buy Bitcoin. Otherwise, it makes more financial sense to buy cryptocurrency and speculate on its price through crypto exchanges like Coinmama. For anyone who wants to know how to get cryptocurrency through mining, that means setting up shop where the average investment per Bitcoin mined is as low as possible. Overhead Costs The biggest battle in keeping the cost to mine lower than the price to buy BTC is to minimize the price and demand for electricity. The GPUs used for cryptocurrency mining are incredible energy-hungry, and cooling all of those GPUs to prevent them from overheating takes even more electricity. As a result, electricity costs are the single biggest driver of where it makes financial sense to setup a Bitcoin mining operation. It’s also why neighboring countries can have such widely divergent average costs per Bitcoin mined – one country may provide cheap electricity through abundant hydroelectric power or oil and gas reserves, while the other does not. A country’s economic status also plays a role in determining how expensive Bitcoin mining will be. Mining operations require a lot of lands and often newly built warehouses, so real estate and construction prices can make a big difference in overhead costs. Every miner also needs to hire skilled technicians to monitor their equipment, whose wages will be determined in part by the local cost of living. Government Regulation Economics isn’t the only consideration for cryptocurrency miners, though. Governments’ regulatory environments – whether they want to encourage people to buy cryptocurrency and miners to move in – is also extremely important. After all, no miner wants to invest in operation only to be cut off from electricity or to find out that cryptocurrency mining is being heavily regulated. Such a scenario played out in China, and the country’s thousands of Bitcoin miners are now seeking to move operations abroad. Beyond simply ensuring that regulations remain lax or protective of cryptocurrency miners, a crypto-friendly government can actually improve the economics of Bitcoin mining over time. Many countries are introducing favorable taxation rates for cryptocurrency miners in order to court mining operations. Meanwhile, others are improving the infrastructure needed for mining by installing renewable energy systems or building out high-speed Internet connections.
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