Bitcoin mining is a lucrative business, given that you have the right conditions. By right conditions, what we mean is
- Cheap electricity.
- Best climate.
- Internet speed.
- Countries law against cryptocurrency mining.
If your country has all these favorable conditions, you are very lucky. If you are planning to move to a different country, just to mine cryptocurrency, or build a mining farm, this article is for you.
The most important factors when it comes to starting a profitable mining business are the electricity cost, taxes on cryptocurrency, and the government’s stance on cryptocurrency mining. All other factors like climate and internet speed is not that of importance.
Based on all these factors, giving precedence to electricity cost, taxes, and country’s law, we prepared this list of best countries to mine bitcoin and cryptocurrency:
Iran has made it legal to mine cryptocurrency. However, miners require a license to mine cryptocurrency, from the ministry of industry in Iran. What is interesting is that the Iranian government has also approved crypto mining operations for the country’s power plants, as long as they comply with set tariffs on electricity.
With subsidized electricity consumption, electricity cost in Iran is very cheap. It can be as low as $0.01 to $ 0.05 per kilowatt of electricity. With Iran’s pro stance on cryptocurrency and cheap electricity, mining is very profitable here. However, Iran’s climate is generally dry, so you would need to spend a little more money to keep these mining machines cool. At the time of writing, a significant number of mining farms are located in Iran; which goes to say that mining is profitable in Iran. If people are mining, it must be profitable.
Malaysia also has cheap electricity. Which means, you can mine cryptocurrency for profit. The average household price of electricity in Malaysia is $0.06 and $0.10 for businesses. However, electricity is just one factor that affects the profitability of mining. The Malaysian government has publicly announced that they will not ban cryptocurrency; which is good news for all cryptocurrency miners in Malaysia.
The Malaysian government has given full approval for cryptocurrency exchanges to operate in the country. What makes mining in Malaysia even more profitable is the fact that this country doesn’t tax capital gains.
In terms of climate, Malaysia is equatorial. It is a climate where you can experience high temperatures and heavy rainfall all year round; not the ideal place to build a mining farm. However, the cheap electricity makes Malaysia one of the best countries to mine bitcoin and cryptocurrency.
Kazakhstan is very attractive to cryptocurrency miners because of its cheap electricity. Kazakhstan has already established cryptocurrency tax regulations in an effort to support all cryptocurrency-related activities. At the time of writing, crypto mining is not taxed, as long as you do not convert it to fiat. However, the law also outlines that you are liable for taxes if you offer cryptocurrency mining services to others.
At the time of writing, Kazakhstan accounts for 6% of global cryptocurrency mining. This goes to say that if people are mining, it must be profitable. The country’s climate is continental. You can experience cold winters and hot summers; not ideal for cryptocurrency mining.
Electricity prices in Russia are one of the cheapest in the world. At the time of writing, the price of electricity is $0.059 per kWh for households and $0.081 for businesses. But, if you move to a region like Irkutsk or Bratsk, these electricity prices can be even lower. That is why the largest data center in Russia is located in Bratsk. Along with cold climate and cheap electricity, Bratsk is an ideal place to mine cryptocurrency.
3) The United States
In the United States, mining cryptocurrency is perfectly legal; however, you are required to report capital gains on cryptocurrency. The average electricity price of the United States is 13.19 cents per kilowatt-hour (kWh). However, different states have different electricity prices. You can check electricity prices of different states here. At the time of writing, the state with the lowest electricity price is in Louisiana, at a price of 9.37 cents per kWh.
The climate of the United States is continental. It has very hot summers and very cold winters. However, on the west coast, the climate is cool, making it an ideal place to mine cryptocurrency.
In Canada, for tax purposes, cryptocurrency is treated as an asset. At the time of writing, Canada does not consider cryptocurrency to be legal tender. However, it is not illegal to mine cryptocurrency. All cryptocurrency exchanges in Canada will be required to register with the Financial Transactions and Reports Analysis Centre of Canada.
The average electricity price in Canada is $0.174 per kWh. This is fairly expensive; however, you can get an electricity price as low as $0.073/kWh in Quebec. These electricity prices change all the time; you can check out here for electricity prices by states. The climate in Quebec is cold and temperate, making it an ideal place to mine cryptocurrency.
At the time of writing, China accounts for more than 60% of the global hash power. This could only mean one thing; if people are mining, it must be profitable. In China, Xinjiang is the region where mining is mostly done. More than 35% of the global hash power is concentrated in this region. The biggest and the obvious advantage of mining in China is cheap electricity. If you want to migrate to a different country, just to mine Bitcoin, China is the place to go.
At the time of writing, the average electricity price in China is $0.084/KWH; this is phenomenally cheap. It is perfectly legal to buy, hold, and mine cryptocurrency in China. However, at the time of writing, cryptocurrency is not considered legal tender in China. In terms of taxation, China considers cryptocurrency to be virtual property. So cryptocurrency is taxed based on this policy.
If you are planning to mine cryptocurrency in China, be prepared to undergo strict tax inspections. Interestingly, Chinese president Xi Jinping said his country should “seize the opportunity” presented by blockchain. This is clearly positive news for cryptocurrency miners in China.
Cryptocurrency is unstoppable. Governments can ban, deregulate, criminalize cryptocurrency, but crypto will always be there. No one controls it. Mining with cheap electricity is the most profitable way to earn it. Above mentioned countries are some of the best countries to mine cryptocurrency.