The average electricity price across the world is 18.8 cents per 1 kWh. However, prices range from 3 cents per kWh in Algeria to 62 cents per kWh in South Korea. Thus bitcoin-transaction for Algerian miners costs about $5, whereas for miners from South Korea – $ 101. The difference reaches 20.5 times.
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 criticized 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.
Georgia, has been very welcoming to cryptocurrencies like few other nations.Georgia was also the first country to implement a blockchain land registry, and recently partnered with mining firm BitFury, which has mined over 600,000 Bitcoins to date. The American company pays no tax on a massive warehouse in the capital city, Tbilisi, and enjoys a sweetheart deal on VAT.
Elsewhere, Georgia has a strong hacker scene, and minuscule electricity costs of around 8c/kWh. With a raft of hydroelectricity plants to come, that will continue to stay low and attract yet more miners to a country that, while small, is home to a vibrant culture, incredible landscape and a geographic location lodged right between Europe and Asia.
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. 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.
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