Senator Cynthia Lummis (R-WY) has given a specific date for when her long-awaited crypto regulator bill will be unveiled. The legislation will help to sort cryptocurrencies under appropriate regulatory labels and federal jurisdictions. According to a tweet from the senator on Friday, the final version of her bill will be released on Tuesday, June 7th. Lummis has spent months working on the bill alongside Senator Kirsten Gillibrand (D-NY), announcing it as early December 2021. The bill will reportedly provide sweeping…
Cryptocurrency mining remains profitable. However, it has come under significant scrutiny in the past few months.
Things took a turn for the worse when the Chinese government hit mining. Continuing its hardline stance on the crypto industry, Beijing cracked down on mining this year.
A Long Way Here
The nuances between China and mining are pretty interesting. For years, Beijing has made it clear that cryptocurrencies aren’t welcome in the country. It released a circular in 2017 confirming that crypto transactions aren’t legal, causing massive panic. Then, in late 2019, Beijing cracked down on crypto businesses
2019’s crackdown coincided with the announcement of the digital yuan. The coin would be China’s central bank digital currency (CBDC) and a significant part of the country’s development plans. Beijing’s message was that its cryptocurrency would be the only one in circulation.
Regardless of all this, however, China’s crackdown didn’t hit the mining space. The world’s largest mining company, Bitmain, originates in China. Many experts believed that China’s government understood the country’s place in mining.
According to the Bitcoin Mining Map, China contributed 65 percent of the global Bitcoin hashrate at some point. So, the country was too big to fail in a sense.
All of that changed earlier this year. China’s government told regional governments to cut electricity subsidies for miners. It was a shocking move indeed, especially for the companies that had set up in China. The market reacted poorly, with coin prices going down the drain and everyone running for the hills.
Ever since the government’s announcement came in, it’s been one exit after another. Mining companies have left in their numbers, and many are looking to settle elsewhere. It is also worth noting that other companies have left as China’s crypto policies get worse.
This presents a bit of a problem for individual miners. Many of them want to know the best countries to mine, especially now that China banned mining.
Driving Factors for Profitable Mining Operations
As it is with any industry, there are specific factors that drive profitable operations. In the case of crypto mining, you have the following:
It’s essential to have fast and reliable internet connections to run your mining operations. This will come with fees, depending on where you live.
Cryptocurrency mining tends to consume massive amounts of electricity. So, it would help if you had an abundance of electricity to mine profitably. But, at the same time, you need cheap electricity. So, if you’d be getting a lot of power, you might as well be able to get it for cheap.
An encouraging climate
Climatic conditions need to be ideal for your mining operations. Bitcoin miners need to operate continually, and they generate an incredible amount of heat. So, you need somewhere with a cool climate to reduce temperatures.
With a cool climate, you can keep these energy-hungry machines in good condition. As a result, you also reduce electricity consumption – and, by extension, your bills.
The country’s economy
We also recommend understanding how these countries are doing economically. This will help you to know your financial outlay per time.
Besides the equipment you’ll be running, you will probably need people to help monitor your mining operation. These people have high skills, and their services come with fees. To calculate their salaries, you will need to consider the country’s economy and cost of living.
Real estate and construction expenses should also factor into your consideration. These will depend on the country’s economy as well.
If there’s anything the China debacle taught us, it’s that governments can change their policies whenever they please. This is a crucial point to note when you’re selecting a country to base your operations on. So, you want a country where government policies favor your mining activities. This way, you can work as long as you need.
The Best Countries for Crypto Mining
Let’s take a look at some of the ideal countries for mining:
Compared to the rest of the world, Sweden has one of the best mining infrastructures. But, unfortunately, a supervisory body of the Swedish Financial Supervisory Authority hasn’t done much to regulate digital assets yet. But, mining thrives in Sweden nonetheless.
Sweden scored about 89 points in the 2020 Property Law Index. Commercial electricity in the country costs $0.065 per kilowatt-hour. Also, Sweden has one of the highest internet speeds. Furthermore, its annual average temperature of 2.10 degrees Celsius is excellent for cooling your mining gear.
One of the most prominent Nordic countries, Norway is another place where miners feel safe and welcome. As a result, the country scored 84 points in the 2020 Property Law Index, making it an attractive spot.
Commercial electricity in Norway costs $0.07 per kilowatt-hour. This makes power quite affordable for everyone. Its internet download speed is about 38.56 Mbps, so that you can connect to the blockchain pretty well. An average annual temperature of 1.50 degrees also makes Norway ideal for cooling your mining gear.
Canada has become an exciting country for crypto. Investment products have thrived in the country, and its mining space is growing as well.
Canada scored about 88 points in the Property Law Index, ranking in the top 10. Its commercial power price tag is also pretty low at $0.10 per kilowatt-hour. Internet download speeds stand at 28.7 Mbps, one of the best in the world. In addition, Canada has an average annual temperature of about -5.35 degrees. So, you will have no issues cooling your gear.
Besides just mining, Georgia is one of the most crypto-friendly countries in the world. Its broadband download speed of 26.8 Mbps is more than enough for blockchain connections. Additionally, Georgia’s electricity price is about $0.056 per kilowatt-hour. Also, its annual temperature is cold enough to cool your mining machines.