Where are the cheapest and best places for Bitcoin mining?
Bitcoin mining takes energy – and lots of it – so it’s not the cheapest past time. Dedicated Bitcoin mining machines require a cold climate, low-cost electricity, and high-speed internet for optimal results.
Here’s a list of some of the most popular places for Bitcoin mining right now.
Iceland has been growing in popularity as of late. Iceland meets all the requirements for Bitcoin mining: cool temperatures, low-cost energy, and high-speed internet. The country has an abundance of geothermal energy that can easily power Bitcoin mining machines.
Iceland may also be popular because it offers renewable energy options. Bitcoin mining has been criticised in the past by environmentalists as a major threat to the climate. Others combat this argument, saying that we don’t know the final numbers.
Regardless of which side of the argument you sit, focusing on renewable energy sources for Bitcoin mining shouldn’t make things worse, at least.
Unfortunately for Iceland, the country might be proving to be too popular for Bitcoin mining. Iceland could end up losing all its power entirely as a result of Bitcoin mining.
That leads us to our other locations…
Crypto mining companies are just beginning to dip their toes into the Great White North that is Canada. Mining locations range across the country, with much of the focus being in Vancouver, BC, and in the province of Quebec.
A company called Hydro Quebec is cashing in on the incoming miners, offering electricity costs of $0.0248 per kWh for data centers and $0.0394 per kWh for miners. That’s approximately 50% to 75% less cost per kWh than comparable locations in North America.
Undoubtedly a cold country, Russia has some of the cheapest electricity in the world. The country also offers alternative energy solutions, such as hydroelectricity and nuclear power.
Russia has announced plans to build a large-scale cryptocurrency mining operation, making it an upcoming, rather than current, spot for Bitcoin mining. Much of the mining equipment will end up in private homes to maximize Russia’s 20 GW power capacity surplus (but how secure will this be?). Dmitry Marinichev, the man who announced this plan, stated that “Russia has the potential to reach up to 30 percent share in global cryptocurrency mining in the future.”
If all goes according to plan, Russia is looking to be a popular spot for Bitcoin and other crypto mining.
The cheapest Bitcoin mining location is…
Actually none of the above! According to recent data released by Elite Fixtures, a lighting & furniture firm, Venezuela rings in as the cheapest location for Bitcoin mining, at $531 per BTC.
The data was configured from governments, utility firms, and the International Energy Agency sources. The price of power consumption was based on the averages from the three most popular cryptocurrency mining rigs.
Interestingly, many of the countries listed as the cheapest locations for Bitcoin mining wouldn’t exactly be described as cold-climate locations. That makes me wonder how much cooler temperatures actually end up factoring in. Evidently not as much as cheap electricity rates.