Best Countries to Mine Cryptocurrency in 2022

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Pack up your crypto mining business and throw yourself into one of these countries!

The price of Bitcoin has been on the rise since it hit the crypto market in 2009. Despite recent volatility, the price of a single Bitcoin is still staggering. $24,130 as of August 8, 2022. Given the value of Bitcoin, it’s no wonder that many professionals and amateur investors are eager to tap into the booming market.

However, setting up a cryptocurrency mining operation involves a lot of things, such as the cost of equipment, hash rates, and the cost of electricity. With these considerations in mind, the cost of mining a single Bitcoin has been estimated between $13,000 since July of this year. Still, the actual costs vary widely depending on where the cryptocurrency is mined.

Before we introduce you to some crypto mining-friendly countries, let’s take a look at the factors you need to consider when looking for a place to set up your crypto mining business.

Factors affecting crypto mining operations

Electricity costs

Electricity costs are a major factor in determining the cost of a crypto mining business. So, the smart choice is to move to a country with low electricity costs. One such country is Venezuela, where electricity prices are as low as one cent ($0.01) per kWh of electricity.

This makes Venezuela a terrific country for cryptocurrency mining. At the price of US$531 per piece, Venezuela is the cheapest country for crypto mining based on electricity costs. This, combined with Venezuela’s extremely high inflation rate, close to 3000% in 2020, many Venezuelans have turned to crypto mininghoping this can be a way out of hyperinflation.

However, cheap electricity is not enough for miners as other issues, such as power outages and slow internet speeds, affect the profitability of crypto mining for miners in Venezuela. Also, before crypto mining became a legal and well regulated mining activity in Venezuela in 2020, another major risk to mining activities in the country was arrests and raids. In 2017, the country cracked down on Bitcoin mining by followed reduce high power consumption. According to some miners, the Venezuelan government also viewed crypto as “a threat to the already weak bolivar (the country’s currency) and its strict rules on capital flight.”

The introduction of industry guidelines and regulations does not mean that everyone can now mine crypto in Venezuela. For those who want to mine crypto legally in the country, they must obtain a license from Sunacrip, the country’s crypto watchdog. In 2021, the Venezuelan authorities grasped more than 100 miners and mining farms operating without permits.

Internet speed and costs

Mining operations are entirely based on the digital domain. This means that to run a successful Bitcoin mining business, a fast and reliable internet connection is of vital importance. In terms of internet speeds, Jersey in the British Isles in Europe would be the best country to move to. The country enjoys a download speed of 274.27 Mbps (megabytes per second), which is nine times faster than the global average.

Just because a country has fast internet doesn’t mean it’s cheap. In fact, some of the countries with the world best internet speedthe Netherlands (107.3 Mbps), Luxembourg (107.94 Mbps) and Iceland (191.83 Mbps) high monthly internet charges. When it comes to pricing, Syria emerges as the best country for crypto mining. The average monthly broadband internet costs in the country are $2.15 per month.

Climate favorability

Bitcoin mining generates a lot of heat, so much so that it has the ability to push global warming above 2°C. Besides being bad for the environment, this heat is also bad for the devices used to mine crypto. Overheating can shorten the life of a computer’s hardware and make it run slower than a cooler computer.

The best way to avoid this is to place your crypto operation in a colder country. One of the best countries when it comes to climate is Sweden, which has an average temperature of 2.1°C. The country’s innovators have even tried to reuse the heat generated from Bitcoin mining. Genesis, one of the nation’s leading crypto-mining companies, uses the heat generated from its operations to provide heat to a greenhouse that produces fruits and vegetables.

Crypto Mining Friendly Countries

Considering the above factors, certain countries emerge as the best locations for crypto mining. These include:

Iceland

As we have already discussed, Iceland has high internet speeds. Moreover, electricity costs are also cheap in the country. Commercial electrical service in the country costs $0.12kWh. In addition, 100% of this electricity supply comes from hydroelectric dams and geothermal power plants. These factors have made the country a popular place for crypto mining, as almost 8% of all global bitcoins have been mined in the country. The country too has no special legal restrictions on crypto mining.

Norway

Nicknamed a “green oasisby Cointelegraph, Norway contributes almost 1% to the global Bitcoin hash rate. With an average internet speed of 88.67 Mbps, Norway is one of the countries with the best internet speeds for crypto mining. In terms of electricity supply, the country is highly dependent on hydroelectric power, and electricity costs are $0.143 per kWh for households and $0.127 for businesses.

The cold weather and mild summers in Norway also keep mining equipment cool. The country does not recognize Bitcoin but neither does it prohibit people from own and invest in them. Additionally, in May this year, the proposal to ban Bitcoin mining was reversed by the Norwegian Parliament, indicating the government’s positive attitude towards crypto mining in the country.

Norway has also reduced the electricity tax for energy-consuming businesses (such as data centers) by $0.017/kWh to $0.0006/kWh in 2016, making it an attractive location for Bitcoin miners conducting power-intensive operations.

When researching a country to start a crypto mining business in, it’s important to consider how the country fares on a wide range of factors in addition to internet and electricity costs. One of those driving factors is the legal regulation of crypto in the region, which varies from country to country and can change quite frequently and quickly. Although the industry has been hit by price crashes over the past two months, with more and more people and businesses using crypto, the trend isn’t going away anytime soon.

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Header image courtesy of Pixabay

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