As we all know by now, Bitcoin (BTC) is a currency of the likes we’ve never seen before. It’s an entirely new kind of money that introduced a new process for obtaining it: mining.
Back when no exchanges existed in the late 2000s, Bitcoin mining was the only way people could get their hands on BTC. Simply put, mining is the process in which miners (a.k.a. people with high-powered computers) solve complex mathematical problems and verify transactions on the blockchain, rewarding them with newly-minted coins.
This process was highly electricity-intensive, which added to the cost of the already fully-upgraded computers that most miners are using. Now, people are looking for new ways to maximize their profits by keeping their costs low—which is why people are always looking for mining-friendly areas.
What makes a location mining-friendly?
There are a couple of things that make some areas more mining-friendly compared to others. Here are some of the most common ones that people take into account:
- Excellent internet connections
What good can a super-powerful computer do if your internet is constantly lagging and disconnecting? If you’re looking for a place to mine BTC, make sure that the country has speedy connections so that your mining isn’t interrupted.
- Cheap electricity costs
As we mentioned earlier, mining is a highly energy-intensive process. It relies on electricity to speed up the mining process. If you want to maximize your profits, you’ll need to find a place that won’t stack up electric bills and add to your costs.
- Cold temperatures
Mining machines operate non-stop—and we don’t want our computers to overheat, right? This is why people look for cooler climate conditions when they’re deciding where to mine their BTC.
- Approval from the government
If a country’s government has a negative stance on Bitcoin or cryptocurrencies in general, mining may be illegal. Before you pack your bags and move to a place with fast internet, cheap electricity, and cool temperatures, it might be a good idea to check the government’s outlook on crypto first.
Top places to mine Bitcoin today
If you’re seriously considering packing your bags and moving to a more mining-friendly country, here are a few places that you can take into consideration:
- Iceland – Iceland is an excellent place to set up your mining rig with an abundance of affordable energy (hydroelectricity and geothermal) and a colder-than-usual temperature. It also has a strong tech scene and a friendly regulatory environment.
- Georgia – Georgia is home to many large mining farms, making it a potential landing spot for your mining rig. It has low electricity costs, a rich tech scene to add extra incentives for miners, and favorable tax laws.
- Venezuela – Venezuela is a strong Bitcoin country and has been home to many supporters. It has been a favorite location for mining because of its cheap electricity costs, so it might be a place that’s worth looking into.
Of course, these are just three of the many mining-friendly places. America, Canada, and Russia are also among those with relatively cheap electricity costs, allowing miners to thrive. Alternatively, places like Kuwait, Sweden, and Finland are attractive because of their internet speeds.
Just remember: we’re talking about moving to a different country here, so make sure you aren’t basing it solely on mining needs. Be sure to pick a place that you’ll also enjoy living in.
Is mining still profitable today?
Mining was extremely profitable back in the day, so if you started way before any of BTC’s big booms, then we applaud you. However, as Bitcoin grew in popularity, so did the competition.
This means that you’ll need to spend more to be competitive—and some people may argue that it may not be worth it anymore. Luckily, Bitcoin is over 12 years old now and mining isn’t the only way to get BTC anymore.
Now, there are tons of exchanges and peer-to-peer platforms to choose from. Buying Bitcoin is much more accessible now, especially with platforms like Paxful offering nearly 400 ways to pay and starting amounts as low as 10 USD. You can even get one of the best Bitcoin wallets for free once you sign up.
Ultimately, if mining is something that you really want to do, make sure that you’re aware of how expensive it can get before you fully commit. And if you don’t agree with all the associated costs but still want to get into Bitcoin, there are ways for that too. The choice is yours, but no matter what you decide to do, we’re behind you every step of the way.
*The content of this article is for informational purposes only. You should carry out your own independent verification of facts and data, do your own research and may want to seek professional advice before making any decisions.