The extraction of cryptocurrencies is one of the most profitable businesses, especially in the conditions of the pandemic that hits society. But accessing the business is not the same in all parts of the world. In this work we present the three most recommended sites for the development of Bitcoin mining.
To determine if a site is good at mining cryptocurrencies, a number of factors must be taken into account. These include government laws, the cost of services and the weather. There are others such as crime, the costs of materials (cables, transformers, etc.) and the value of rents, but the first three are fundamental.
There are many countries where electricity is cheap, laws friendly and climate cool, those are the good places. But, in addition, there are places where these three aspects are taken to the extreme, with a cost of energy tens of times cheaper and a cooler climate, as well as laws that are not only friendly, but also committed to the development of mining. Those are the ideal countries.
What are the three ideal countries for Bitcoin mining?
In Latin America, for example, few countries can be considered good for business. Less frequent, therefore, are the sites that can be considered ideal for Bitcoin mining. In some nations, energy is cheap, but laws unreliable, and vice versa.
However, in other latitudes, conditions are beginning to change. There are countries where every miner would enjoy important privileges such as Croatia. But there are others that could be called true paradises for those who are dedicated to the extraction of cryptocurrencies.
Those nations are led by Canada. The government of this North American country was one of the first to realize the importance of Bitcoin mining during the pandemic. He immediately acted, declaring crypto mining an essential activity.
There is little to say about Canada’s climate, which is almost perfect for keeping farms cool. At the same time, the cost of energy is extremely cheap due to the abundance of hydroelectric sources capable of creating huge surpluses. And, as if that were not enough, regulations are practically scarce. These factors make the country one of the ideal sites for Bitcoin mining.
More towards Europe
The second of the sites that can be described as ideal for Bitcoin mining, is Iceland. Like Canada, the temperature on this island located in the extreme north of Europe is colder than the refrigerator we have at home.
Hydroelectric and geothermal energy is abundant and government laws do not disturb activity at all.
Further east, in the Caucasus region, is the third paradise for mining. It is the small country of Georgia, in the south of the Russian Federation. Like the previous two, the weather, policies, and electricity costs make it the place to be.
It could be said that this list should have other candidates, for example, China, not by chance in that country is 65% of the computing power of Bitcoin. One could speak of Venezuela, where electricity is very cheap and the government promotes, sponsors mining and has credit plans for citizens to set up their farms.
However, these are special cases that must be studied very carefully.
The case of China
Indeed, electricity in China is outrageously inexpensive and in many areas the climate is cool. Also, the government had lowered its guard against the miners. So why isn’t China in the top three ideal sites for Bitcoin mining?
Despite being considered a legal business, mining continues to be tripped up by the state. In some provinces such as Inner Mongolia, where electricity is subsidized for all industries, cryptocurrency mining is excluded from that subsidy.
Likewise, we can speak of a very recent case in which Beijing would have intensified the freezing of bank accounts, both of miners and exchanges. With this, miners face serious problems when it comes to paying their electricity bills, since they cannot exchange their Bitcoins for yuan to cover that and other operating expenses.
Many other cases of intimidation, censorship and even persecution by the authorities can be cited. This, according to some media, would be pushing the decentralization of Bitcoin mining, when dozens of farms begin to leave China in search of ideal sites for their development.
Why isn’t Venezuela first on the list?
If you are looking for sites that are more advantageous than Canada for Bitcoin mining, it would have to be a mining state with free electricity. Can such a place exist? Yes, it is called Venezuela and, at least on paper, it is presented as the best place where miners could settle.
But in this case, the aphorism of one thing is in theory and another in practice fits perfectly. In the South American country, despite having a Caribbean climate, it has great electrical potential, with abundant sources for the installation of hydroelectric energy.
Venezuela has one of the most impressive dams on the planet, such as the Guri. With generation of 10,235 MV, it is the third largest in the world and the second in the continent, which could supply electricity to the entire Caribbean and Central America. As if that were not enough, the country has impressive natural gas reserves, with a figure of more than 200 billion cubic feet, ideal for energy by combustion.
So why isn’t it the biggest of the three ideal sites for Bitcoin mining? In a combination of government corruption, abuse by police officials, on the one hand, and on the other, by a set of punitive sanctions and an economic blockade by the United States that has caused havoc, where conditions are no longer optimal for this business.
In a future work, the case of Venezuela will be analyzed in the hands of direct protagonists.
Data to take into consideration
- Nations that can be considered ideal for Bitcoin mining must comply with a set of factors.
- The top three factors are cool weather, friendly laws, and low electricity costs.
- Among those countries that can be considered ideal for Bitcoin mining, three stand out: Canada, Iceland and Georgia.
- Other countries that could meet these parameters, such as China and Venezuela, have particular situations that end up harming the miners.
- Taking into account the qualities of mining, the government of Canada considered this business indispensable for the economy in times of pandemic.