What is Cryptocurrency Mining?
Cryptocurrency mining is one of the primary methods to generate a profit in the cryptocurrency industry, and it consists of a cluster of computers on a global scale. Each computer competes to solve a mathematical problem specified in a blockchain network of a certain cryptocurrency in the creation of a block.
Factors affecting the profitability of a cryptocurrency mining business:
- Property ownership: Legal security needs to be provided of the property in which the mining is done.
- Electricity costs: The lower the cost of the electricity needed to mine the cryptocurrency, the better.
- Internet speed: More blocks can be mined with faster internet speed.
- Climate conditions: The cooler the weather in your location, the easier it is to keep the mining equipment cool.
Based on these characteristics, here are the top 10 best countries in the world to mine cryptocurrencies:
10. Latvia
- In the 2020 Property Law Index, Latvia accumulated 72 points.
- The commercial electricity rate here is USD 0.18 per kWh.
- With download speeds as high as 32.74 Mbps, Latvia comes in 16th place globally.
- A valuable advantage here is that the country has an average annual temperature of 5.65 degrees Celsius, which is quite generous in helping to cool down the digital mining equipment.
As an interesting final piece of information, the government of this beautiful North-Eastern European country recognizes cryptocurrencies and approves of them, though it also collects taxes on such assets.
9. Switzerland
- In the 2020 Property Law Index, Switzerland accumulated 87 points.
- $0.21 per kWh is the cost of commercial (non-domestic) electrical service in Switzerland.
- Switzerland is in the ninth position worldwide for internet download speeds, with speeds of 38.85 Mbps.
- An annual average temperature of 5.50 degrees Celsius in Switzerland is quite generous in contributing to the cooling of digital mining equipment.
8. Georgia
- In the 2020 Property Law Index, Georgia accumulated 69 points.
- Georgia’s cost of commercial (non-domestic) electric service without a doubt, is the lowest in this ranking with $ 0.06 per kWh.
- In contrast, Georgia’s internet download speed is at 7.14 Mbps and located at 88th position worldwide.
- Georgia has an average annual temperature of 5.80 degrees Celsius, quite generous in contributing to the cooling of digital mining equipment.
7. Estonia
- In the 2020 Property Law Index, Estonia accumulated 83 points.
- $ 0.17 per kWh is the cost of commercial (non-domestic) electrical service in Estonia.
- Estonia ranks 18th in the world and has an excellent internet download speed of 31.55 Mbps.
- Estonia has an average annual temperature of 5.10 degrees Celsius, quite generous in contributing to the cooling of digital mining equipment.
Estonia has created an entire online government ecosystem not only aimed at native Estonian citizens but also international entrepreneurs.
“Many entrepreneurs move their blockchain businesses to Estonia due to existing cryptocurrency regulations. The favorable tax regime and ease of doing business means that more than 700 cryptocurrency and blockchain companies with foreign shareholders are directing their blockchain businesses to this country,” said Dmitri Lihno, director of the branch of Private Financial Services in Estonia.
6. Canada
- In the 2020 Property Law Index, Canada accumulated about 88 points, occupying the eighth position worldwide.
- $ 0.10 per kWh is the cost of commercial (non-domestic) electrical service in Canada.
- Canada ranks 25th worldwide and has a good internet download speed of 28.76 Mbps.
- Canada has an average annual temperature of -5.35 degrees Celsius that is one of the best on this list to cool digital mining equipment.
5. Finland
- In the 2020 Property Law Index, Finland accumulated about 88 points, occupying the fourth position worldwide.
- $ 0.07 per kWh is the cost of commercial (non-domestic) electrical service in Finland.
- Finland ranks 24th worldwide with an internet download speed of 29.34 Mbps.
- Finland has an average annual temperature of 2.10 degrees Celsius, one of the best in the world for cooling digital mining equipment.
4. Iceland
- In the 2020 Property Law Index, Iceland accumulated about 88 points, occupying the ninth position worldwide.
- $ 0.12 per kWh the cost of commercial (non-domestic) electrical service in Iceland.
- Iceland ranks 35th worldwide with an internet download speed of 22.13 Mbps.
- Iceland has an average annual temperature of 1.75 degrees Celsius, one of the best in the world for the cooling of digital mining equipment.
3. Denmark
- In the 2020 Property Law Index, Denmark accumulated about 86 points, occupying the 16th position worldwide.
- $ 0.069 per kWh is the cost of commercial (non-domestic) electrical service in Denmark.
- Denmark ranks in the fabulous fifth place worldwide with internet download speed of 49.19 Mbps.
- Denmark has an annual average temperature of 7.50 degrees Celsius.
This beautiful European country, apart from having ideal conditions to mine cryptocurrencies also sees the government not charging taxes for the trade or extraction of cryptocurrencies.
2. Norway
- In the 2020 Property Law Index, Norway accumulated about 84 points, occupying the 20th position worldwide.
- $ 0.07 per kWh is the cost of commercial (non-domestic) electrical service in Norway.
- Norway ranks 11th worldwide with an internet download speed of 38.46 Mbps.
- Norway has an annual average temperature of 1.50 degrees Celsius, ideal for cooling digital mining equipment.
In February 2017, the Norwegian government stated that it would not impose taxes on the purchase or sale of Bitcoin and this Nordic country is very safe to trade and mine cryptocurrencies.
- Sweden
- In the 2020 Property Law Index, Sweden accumulated about 89 points, occupying the seventh position worldwide.
- $ 0.065 per kWh is the cost of commercial (non-domestic) electrical service in Sweden.
- Sweden ranks among the top five in the fastest internet speed worldwide with download speeds of 55.18 Mbps.
- Sweden has an annual average temperature of 2.10 degrees Celsius, the ninth-best worldwide for cooling digital mining equipment.
The Swedish jurisdiction, compared to other countries within the EU and the rest of the world, is generally quite favorable towards cryptocurrency companies and users. The Finansinspektionen, (government regulatory and supervisory body of the Swedish Financial Supervisory Authority) has legitimized the fast-growing industry by publicly proclaiming bitcoin and other digital currencies as a means of payment.
Notable omissions from the list include China, Russia, Belarus, and Venezuela. These countries were not listed because legal security and respect for private properties are important criteria to be on the list. However, the aforementioned anti-democratic nations will never be safe to mine cryptocurrencies.
