Mining Heaven: Best Places to Mine Cryptocurrency
The cryptocurrency market has expanded significantly throughout recent years and mobilized hundreds thousands of people to do what nobody hasn't even heard about not long ago. The Coin Shark has already posted an article about mining and today we will tell, where miners feel the best.
Early in February, 2018 Bloomberg posted a rating of most suitable countries for mining with Canada, Switzerland, Iceland and China on the top and Russia, the US, Sweden, Argentina, the UK, Paraguay and Chile as “runners-up”.
China has become a leader of mining industry. According to Blockchain.info, around 70% of biggest BTC mining pools are located in the Middle Kingdom. However, The Coin Shark has already written that the government adopted some strict measures against digital currencies, ICOs and mining, so miners are currently looking for a better place to extract digital money.
Some developing economies try to join mining industry forefront as it is really possible to “make money on miners”. This is, for instance, Georgia, that has already implemented rather appealing conditions for these activities.
But what are these conditions? And what do miners need to feel happy? Well, first of all it is of course an opportunity to mine digital currency without breaching laws of a particular country.
Secondly, energy costs are very important, as huge mining farms consume really a lot of electricity. Christian Catalini, founder of Cryptoeconomics Lab at the Massachusetts Institute of Technology says “the price of electricity mostly drives where mining is taking place”. So, it would be rather useful for mining enterprises to be able to move, in case it is needed. Of course it is rather difficult in turns of logistics. However, some enterprises try to find a solution, thus, austrian company Hydrominer GmbH and Swiss Envion AG build their data centers in cargo containers.
Thirdly, miners are interested not only in power price, but also in sustainability of these costs. Iceland, for instance, has frozen electricity rates. By the way, its government announced it will not be able to welcome all miners who are willing to do business in the country, as it will require more energy than the whole country consumes today.
Indeed, miners also consider general economic, political, ecological situation in the particular are. For example, mining in countries with frigid climate will reduce expenses on cooling systems for data centers, while mining where it is +40 С in the shade will require additional costs.
Every country with low energy costs can potentially expect miners to come, especially if all other necessary conditions are ensured. Some countries create special economic zones with more favorable legal and administrative framework for doing business.
Lastly, it is necessary to mention how mining is connected to the environmental protection sphere. Today huge electricity consumption required for mining has already become an ecological issue. So there are already some mining projects related to the usage of renewable energy sources. It would be very great to use economic potential of mining and cryptocurrency industry to promote and develop renewable energy and everyone will surely benefit from it.
Subscribe to The Coin Shark news in Telegram: https://t.me/thecoinshark
See more
