March 28, 2024

In which country is it more profitable to mine cryptocurrency?

In which country is it more profitable to mine cryptocurrency?

Major miners are the dominant players in the Bitcoin (BTC) mining industry, and Genesis Digital Assets is one of themnumber.In eight years, the organization has grown from a collection of dorm room mining rigs to more than twenty industrial scale mining farms around the world. Every quarter, the firm continues to develop and build more businesses.

You might think that if mining takes place indigital format, you can open a farm anywhere in the world. On the one hand, bitcoins can be mined anywhere, but location is a decisive factor in making a decision.

In which country is it more profitable to mine cryptocurrency?

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Since this industry is quite new, andthere are no instructions for scaling such a business yet, the company's team learned from its own experience, solving all the problems that arose. As a result, Genesis Digital Assets has written a guide of sorts on how to create a successful large-scale cryptocurrency mining.

Here are four main factors to think about when choosing the location of your new mining farm.

Factor 1: Electricity tariffs

Since the mining of cryptocurrencies requiresfast and powerful installations capable of solving algorithms at high speed, power supply of equipment is the most expensive mining item. Consequently, companies choosing such equipment may suffer from high electricity prices.

Thus, when choosing a location, you should not only know the countries with the cheapest electricity, but also understand the types of electricity sources in a given area.

In which country is it more profitable to mine cryptocurrency?

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Bitcoin mining consumes a lot of electricity -about 110 terawatt-hours per year, which corresponds to the consumption of electricity in a small country. The ASIC miner alone consumes just over 3,000 watts, which is equivalent to running a dryer or heater. With hundreds and even thousands of devices running day and night on mining farms, it's easy to see how electricity costs can spiral out of control.

Factor 2: Availability of green energy

Cheap electricity can be found, but will it beis it eco friendly? The good news is that clean energy sources such as wind, solar and hydropower are cheaper than gas and coal.

A 2019 report showed that “56% of all newof commissioned utility-scale renewable power generation capacity was producing electricity at a lower cost than the cheapest new fossil fuel technology.”

In which country is it more profitable to mine cryptocurrency?

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Although sustainable energy isthe cheapest option in terms of cost, not all miners use it. As more people become aware of bitcoin and what mining is, questions around the use of sustainable energy are coming up more and more, especially after Elon Musk brought the topic to the fore.

The argument that all bitcoin miners are greedy andcareless use of fossil fuels is insufficiently substantiated. ARK Invest and the Cambridge Center for Alternative Finance found that 76% of miners are actively using sustainable energy sources as part of their cryptocurrency mining activities.

In addition, the industry as a whole is striving to introducecleaner ways of working, from emissions reduction commitments under the new Crypto Climate Agreement to using excess heat from your own data center to power local greenhouses, farms and cities.

Factor 3: Miner Friendly Regions

Another question related to the choice of location:Will mining be allowed here? If the authorities give the go-ahead for the mining of cryptocurrencies, the attitude of politicians towards mining can change overnight and end with a complete ban.

This happened recently in China whenThe government has announced a crackdown on bitcoin mining and trading. By June 20, local authorities had stopped bitcoin mining in Sichuan province, and it is expected that 90% of cryptocurrency mining enterprises have already left or will be forced to leave the country. Due to recent power outages, bitcoin mining has been banned in Iran as well, so it's best not to build a farm where you suddenly have to close it.

It is important to keep track of which countries opposebitcoin mining and which encourage it. Many mining enterprises focus on the Scandinavian countries, rich in "green" energy. Canada approves of mining so much that during the quarantine due to the COVID-19 pandemic, it considered cryptocurrency mining to be “vital services.” Chinese miners are opening new businesses in the United States, taking advantage of the abundance of green energy and the favorable political climate.

In which country is it more profitable to mine cryptocurrency?

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Factor 4: local staff

In fact, not many people have direct experience in this area. In essence, you will have to select candidates from areas where skills can be transferred to your work.

For example, Genesis Digital Assets has farms inNorthern Sweden, where the data centers of Facebook, Google and many other companies are also located. And this is a fairly common situation when data centers and mining farms are located close to each other. Such a neighborhood allows you to hire talented personnel who are easier to teach the intricacies of work.

Where is it more profitable to buy cryptocurrency? TOP-5 exchanges

For a safe and convenient purchase of cryptocurrencies with a minimum commission, we have prepared a rating of the most reliable and popular cryptocurrency exchanges that support deposits and withdrawals of funds inrubles, hryvnias, dollars and euros.

The reliability of the site is primarily determinedtrading volume and number of users. By all key metrics, the largest cryptocurrency exchange in the world is Binance. Binance is also the most popular crypto exchange in Russia and the CIS, since it has the largest cash turnover and supports transfers in rubles from bank cardsVisa / MasterCardand payment systemsQIWI, Advcash, Payeer.

Especially for beginners, we have prepared a detailed guide: How to buy bitcoin on a crypto exchange for rubles?

Rating of cryptocurrency exchanges:

# Exchange: Website: Rating:
1 Binance (Editor's Choice) https://binance.com 9.7
2 Huobi https://huobi.com 7.4
3 Exmo https://exmo.me 6.9
4 OKEx https://okex.com 6.5
5 Bybit https://bybit.com 6.3

The criteria by which the rating is set in our rating of crypto-exchanges:

  • Work reliability&#8212; stability of access to all functions of the platform, including uninterrupted trading, deposits and withdrawals of funds, as well as the duration of the market and daily trading volume.
  • Commissions– the amount of commission for trading operations within the platform and withdrawal of assets.
  • Additional features and services&#8212; futures, options, staking, NFT marketplace.
  • Feedback and support– we analyze user reviews and the quality of technical support.
  • Convenience of the interface– we evaluate the functionality and intuitiveness of the interface, possible errors and failures when working with the exchange.
  • final grade– the average number of points for all indicators determines the place in the ranking.

In which country is it more profitable to mine cryptocurrency?

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