Central to the foundation of digital currencies is the practice of mining. Bitcoin mining is the mechanism that safeguards the network, allows rewards, and is the key to the decentralized ethos of digital currency. Mining adds transactions to the ledger of the blockchain and unlocks the latest Bitcoins. So let us have a look at the top crypto mining countries across the globe after China banned all its mining operations.
Crypto Mining Countries: A Long Way Here
The conflict between mining and China is pretty interesting. For years, Beijing made it clear that digital currencies are not welcome in the nation. It issued a circular in 2017 affirming that any transaction in crypto is not legal which caused massive panic. Then in late 2019, Beijing banned all crypto businesses.
The crackdown of 2019 coincided with the declaration of the digital yuan. The coins would be the CBDC (Central Bank Digital Currency) of China and a prominent part of the deployment plan of the nation. The message of Beijing was that its digital currency would be the only one that will be circulated in the country.
Despite all these, the crypto crackdown of China did not hit the mining space to a great extent. Among the largest Bitcoin mining companies, Bitman is the top name that originates in China. Many believed that the government of China identified its weight in the mining space.
As per the Bitcoin Mining Map, the contribution of China was 65% of the complete global Bitcoin hash rate at some point. So the nation was among the top crypto mining countries to fall in a sense.
Driving Factors For Profitable Mining Operations
As it is with any sector, there are specified factors that drive profitable functions. In a crypto mining scenario, you have the following:
- Quick Internet: It is important to have a reliable and fast internet connection that navigates profitable functions. This arrives with charges depending on where you reside.
- Electricity: Digital currency mining tends to consume a huge amount of electricity. So it would be of great help if there is an abundance of electricity to mine profitably. But simultaneously, you will require cheap electricity. So if you would be receiving a lot of power, you might as well get it for cheap.
- An Encouraging Climate: Climatic conditions are required to be ideal for your mining functions. Bitcoin miners require it to function continually, and they develop an incredible amount of heat. So, you require somewhere with a cool climate to decrease temperatures. With a cool climate condition, you can keep these energy-hungry machines in a proper condition. As a result, you also decrease the consumption of electricity and, by extension, your bills.
- Economy Of The Country: It is also recommended to evaluate how these nations are performing economically. This will help you to understand your financial outlay every time. Along with the equipment that you will be operating, you will probably require people to help in monitoring your mining operations. These people have high skills and they offer their services in exchange for some charges. To calculate their charges you will first have to consider the economy of the nation and also the cost of living.
Top Crypto Mining Countries As Of This Year
Now that you are accustomed to the factors that can facilitate a good crypto mining, let us have a look at the top crypto mining countries that are presently leading this sector after China shut all its crypto operations.
One of the most specific Nordic nations, Norway is another place where miners feel secure and welcome. As an outcome, the nation scored 84 points in the 2020 Property Law Index, making it a lucrative spot.
Commercial electricity in Norway is charged $0.07 per kilowatt-hour. This makes power quite reasonable for everyone. Its internet download speed is nearly 38.56 Mbps, so that you can connect to the blockchain pretty fast. An approx annual temperature of 1.50 degrees also makes Norway appropriate for cooling your mining gear.
Canada has changed to an exciting nation for digital currencies. Products for investments have thrived in the nation and its mining space is also evolving as well. Canada scored nearly 88 points in the Property Law Index ranking among the top 10. The commercial power price of Canada is also quite low at $0.10 per kilowatt-hour. The download speed of the internet stands at 28.7 Mbps which is among the best in the world. Along with that, the annual average temperature of Canada is nearly -5.35 degrees. So there will be no issues in cooling the gears.
Among the list of biggest crypto mining countries, we cannot forget this name. Along with just mining, Georgia is among the most crypto-friendly nations across the globe. The broadband download speed of Georgia is 26.8 Mbps which is more than enough for blockchain connections. Along with that, the electricity price of Georgia is nearly $0.056 per kilowatt-hour. Also, its annual temperature is cold enough for your mining gears to cool.
Distant from China, both politically and geographically, Iceland is an island nation. The geothermal and hydroelectricity plants of the country formulate an abundance of affordable energy, suggesting an influx of miners that include Genesis Mining. Crypto mining equipment not only needs a large amount of electricity, but also forms a deal of heat. Cooling them is also important and this can be attained in a cooler environment that Iceland offers.
The Bottom Line
Mining is not optimized equally in all areas. The efficiency of mining is maximized in the presence of various key factors. Since mining is about computers solving complicated mathematical problems, a lot of equipment and energy is required. So not all countries can comply with all the requirements. So in this article, we have spoken about the top crypto mining countries across the globe that are now leading this space. There is one thing that needs to be noted that the Bitcoin mining cost by country changes every year.