Buying cryptocurrency online has been made easy. As a matter of fact, buying Bitcoin online might just be more convenient for you than getting to the nearest ATM. However, in some locations in the world, the cost of mining one bitcoin is just a fraction of the amount that you’d get for the same coin in the open market. This is why Bitcoin mining is gaining more traction around the world, particularly in countries where cryptocurrencies are not strictly regulated and the total cost of mining is not as high.
What are the Overhead Costs involved in mining Bitcoin?
Keeping the cost of mining Bitcoin lower than the price of buying BTC
involves counting all the smaller costs involved in the mining process. From electricity bills to the specialized computerized systems used in the mining process.
Due to this, electricity costs are major costs in the Bitcoin mining process. This is also what makes it relatively cheaper to mine Bitcoin is some countries as compared to others. Countries that can provide cheap electricity have lesser overall mining cost for BTC.
Another element of the cost of mining Bitcoin is the cost of paying workers. Often, in the mining process, you would need other hands to work with and the amount you would need to pay as wages would largely depend on the cost of living of the region where you are.
Apart from worrying about what you have to pay cryptocurrency miners, there are also several other economic factors to consider when trying to choose a location to mine cryptocurrency. One of these factors includes Government regulations in the region.
Some countries have strict regulations on cryptocurrency mining which can be quite discouraging for miners. Countries that however support cryptocurrency activities have lax regulations that protect cryptocurrency miners. Some countries are already beginning to introduce taxation rates that are favourable for miners.
Mining Bitcoin, like most other mining processes, is not as easy as it sounds. It involves quite a lot of patience and resources. However, if you are considering mining Bitcoin, you might want to know that some countries offer better mining opportunities than others. So, if you’re considering finding the best place to go if you want to be a successful Bitcoin miner, then here are a few countries you might want to consider.
These countries have favorable regulations and you’d get the resources you need to get through the process.
Kuwait is known for cheap electricity which can be surprising to many considering that the region contains about eight per cent of the world’s oil supply. The revenue of oil also makes the cost of living in the region low compared to some other countries. This is a major plus for Bitcoin miners.
The total cost of mining one Bitcoin in Kuwait is about $1,983. This makes it one of the cheapest countries for Bitcoin mining in the country.
Venezuela is currently the cheapest place to mine Bitcoin in the world. The total cost of mining Bitcoin in the country is currently put at $531. The is because the nation’s economy is highly subsidized by oil revenue. However, the political turmoil in the region makes it safer than most other countries on the list.
Electricity is very much affordable in Georgia since the country uses hydroelectric power and natural gas to generate power. It is predicted that the country only tapped about 25% of its energy resources so far. This leads to affordable electricity rates which is a major plus for Bitcoin miners. However, the county can get quite hot so you might want to consider an air conditioner during summer.
Estonia is currently known as one of the countries committed to the improvement of internet services and speed within its borders. The country has a long-term goal of being the destination for cryptocurrency miners and developers. This is why the country has very friendly policies on cryptocurrency. Electricity and internet rates are also very affordable.
Iceland offers bitcoin miners a little bit of everything: cool weather, cheap electricity, and favourable regulations. This is why a lot of miners have preferred to go to the country over the past few years. The country runs one of the lowest electricity costs in the world due to a well-developed network of geothermal and hydroelectric plants.
Even labour is said to be cheap in the country. In all, the total cost of mining Bitcoin in Iceland is put at about $4,746 per Bitcoin mined.
Although Canada is not the first country that comes to mind when speaking of Bitcoin mining, the country offers miners quite a lot. Land in northern Canada is cheap and the country has some of the largest hydroelectric power plants in the world. The country also has cool weather and is currently working on policies to get cryptocurrency miners and developers into the country.
Bitcoin mining is not restricted by regulations. One Bitcoin is estimated to be worth about $3,965 in terms of the cost of mining.