Top 10 Bitcoin Mining Countries in 2024
Cryptocurrencies are still promising investments for many. The last 5 years have shown that we are probably living in the middle of a digital gold rush. Investors, tech innovators, and entrepreneurs worldwide are packing their stuff and heading to the hottest spots for mining crypto. Let's examine some of those places, their opportunities, and their drawbacks.
What environment do bitcoin miners need?
I know you want to dive into the list of countries but just wait for a second. Let's find the answer to such a trivial question: What precisely do you need if you are a miner?
We know that crypto mining requires so much energy that your electricity bills will be bigger than Mount Everest. Those happy days when anyone with a decent computer at home could mine crypto without leaving his room are long gone. To become a key player in bitcoin mining, you need substantial space and computer equipment. Plus, you need to maintain its work with air conditioning and a stable internet connection. Doesn't look so easy anymore, right? But that's not all. Let's look at some factors that are also super essential for mining:
Energy prices Yep, money talks even here. Bitcoin (and another crypto) mining is incredibly energy-intensive. Not surprising that the most profitable mining occurs in places with the lowest energy costs. Another factor is sustainability. Just imagine that Bitcoin processing may use as much energy in a single year as the Czech Republic does! That's a massive amount of energy! Some miners tend to be eco-friendly and seek to turn profits without destroying the environment. They often stay in places with access to clean, renewable energy resources and good infrastructure.
Pre Existing infrastructure No one wants to build everything from scratch, so some infrastructure is necessary anyway.
Stable government policies Political stability is one of the critical successes in any business. Smart business people are more likely to invest in locations with favourable policies and outlooks towards their industry than in places with unstable regimes which can ban crypto mining any day.
Openness to innovation Innovators are people who think outside the box. They like cool places with opportunities. Locations willing to cherish bold ideas are the best places to gather creative people and make some cool stuff.
World's Top Bitcoin Mining Countries
Before we browse this great list of Top Bitcoin Mining Countries, I'd like to tell you that this list changes from time to time for many reasons. They tend to update the data quite often. So, to get the most up-to-date information, visit the excellent website Cambridge Bitcoin Mining Map. Without further ado, let's continue our exploration. Here are some of the best crypto and bitcoin mining hubs right now.
- USA Texas, 14% of hash rate share and 35.40% of hash rate share for the USA
Texas is huge! Including the mining industry. The Lone Star State ranks fourth in some hash rate distribution data sets — handling 14% of the U.S. hash rate — but is an easy choice as the hottest spot for bitcoin mining.
Not surprisingly, tens of thousands of ASICs, a technology used to mint new bitcoin, are being delivered in massive quantities to the region. Plus, Texas supports a crypto-friendly regulatory environment and is located in a politically stable country. While the cost of living in the USA is relatively high, Texas has access to several affordable energy sources — including significant renewable resources and stranded/flared natural gas.
- New York, USA, 19,9 % of hash rate share
Again the USA. New York is handling 19,9 % of the hash rate share and is one of the mining leaders. Operated by Coinmint and powered by wind turbines and dams on the St. Lawrence River, the Massena mining facility is built into a former disused aluminium smelter. New York is not only fabulous for spending your holidays, but it also has (at present at least!) relatively friendly policies towards cryptocurrency. New York has a cold climate, and heaps of empty factory spaces are ideal for mining crypto.
Even the energy prices in the Empire State are higher than those in Texas, but nearly a third of this energy comes from renewable energy sources. So, let's put New York second on your list.
- Kentucky, USA, 18.7% of America's total hash rate
Kentucky has everything you need for mining. First, their present governor is a friend to the industry and has passed laws granting tax exemptions to mining operations. Second, the region is known for its sustainable energy resources — generated via hydroelectric dams and wind turbines. And finally, the area has comparatively low energy prices.
- Georgia, USA, 18.7% of America's total hash rate
(I promise, other countries will be on this list, don't worry!) Georgia has the same reasons as Kentucky, such as low energy prices and a favourable regulatory environment.
- Siberia, Russia
Siberia is not only one of the coldest places on earth but also one of the coolest for mining. Russia is now the world's third-biggest bitcoin mining nation after the United States and Kazakhstan and has absorbed a fair share of China's exodus of miners this year.
Being such a freezing place, Siberia has cost-effective conditions for mining cryptocurrencies. Moreover, the Russian government is also looking to cash in on income and taxes generated by mining; last month, the Russian assembly, called Dume, proposed new plans to create entrepreneur-friendly legislation to draw in more BTC miners.
- Johannesburg, South Africa
Let's move to a warmer place. Johannesburg is an economic hub that has added crypto mining to its list of industries. But, there are still some drawbacks I want to mention. South Africa has a famously unreliable power grid that endures regular blackouts. And one more is a well-documented history of recent political instability and labour union issues. So, just keep this in mind.
- Vancouver, Canada
Vancouver is a marvellous city with great attitudes towards innovation. Indeed, North Vancouver recently announced that it would attempt to become the first city heated by cryptocurrency mining. This kills several birds with one stone. Converting the heat generated by bitcoin further reduces energy costs while attracting business to the city. It tackles climate change, creates heat energy, and mines crypto simultaneously. Such a smart move, Vancouver!
- El Salvador
The controversial President of El Salvador, Nayib Bukele, has recently announced several crypto-related projects. One of them is giving every citizen $30 in BTC and creating a volcano-powered city called "Bitcoin City." Many of Bukele's projects are still in their early stages and have a good chance of failure. But if he keeps his promises, El Salvador will become a world leader in the crypto sphere and has everything miners need - sustainably, geothermally powered mining, favourable policies, and the mass adoption of bitcoin wallets.
- Kazakhstan
When China banned crypto, many Chinese mining firms moved their operations to Kazakhstan. The Central Asian state had an 18.1% share of Bitcoin's hash rate in August 2021. The country boasts cheap energy prices but has several disadvantages that get it a spot on this list as a cautionary tale of how not to mine bitcoin. The disadvantages are that the country's mining boom has caused several power outbreaks, creating political instability. One more thing is that almost all of Kazakhstan's energy is made from filthy coal plants.
- Iceland
Iceland is facing maximum electricity capacity and shortages that have forced it to punish heavy users. So, they had to find other places to stay. But with cheap and sustainable energy set to become an increasingly precious commodity, we cannot discount a possible surge back to the top for Iceland and other Scandinavian nations, especially if bitcoin's price takes a cooling that disincentivizes mining elsewhere.
What are the problems with mining crypto?
All problems with mining can be described in just one word - energy. You need a significant ton of energy to keep these mines operating. What happens when access to this necessary resource is limited?
Until August 2021, it was the second-largest mining spot on the planet. However, an energy crisis at the start of 2022 could end the venture. This is precisely what happened in Kazakhstan, a country in Central Asia. "We have not been able to operate properly since October 13, 2021, when the first power cuts hit us," Aibolat Balgozhin, BTC KZ's chief power engineer, said in one interview. "And we are kept in the dark as to when we would be able to work at full capacity or what solutions the power grid operator, KEGOC, is going to come up with."
The energy crisis means the Kazakh government's priority is no longer to court crypto investors who decided to leave China after China put restrictions on mining. The government now taxes energy use by cryptocurrency mines, and mining is no longer profitable. Another thing is the effect on the environment. The Bitcoin Energy Consumption Index provided by digiconomist.net estimates that as of April 2022, a single bitcoin transaction takes almost 2,189 kWh to complete, or the equivalent of just over 75 days of power for the average US household. Huge, right?
If we look at the Kazakh example, much of the power generated for mining was done through coal burning, which is, as you can guess, not the most environmentally-friendly way of getting energy.
Which countries are cheapest on bitcoin mining
We are finally here. Let's look at the list of the cheapest countries to mine crypto.
- Kuwait
According to the latest research on the cheapest places to mine crypto, the winner is Kuwait. By the way, you can check out the study here. Lots of cool stuff.
You don't have to spend vast amounts on crypto mining compared to other countries. What makes Kuwait so attractive to miners? First, Kuwait has a relatively low cost of living, which is why services are cheaper than in other countries. And electricity is so cheap because sunlight is abundant in Arabic countries like Kuwait. There is also lots of solar energy that can be converted to electricity.
- Venezuela
Yep, I know, this is hard to believe that a country that has been in an economic, political, and social crisis during the last 20 years will be the best place to mine bitcoin, but it's true.
Venezuela is the cheapest country to mine 1 bitcoin. It only costs $531 because of its subsidised electricity. Compare this price with South Korea, the most expensive country in bitcoin mining, with a total of $26,170 to mine 1 BTC.
Venezuela is facing huge problems with hyperinflation, power outages, and food shortages, but still, it is famous worldwide for mining bitcoins without spending much money. The country is widely accepting investment in cryptocurrencies and making firm grounds related to bitcoin farming. Unbelievable, right?
If you want to entirely aim toward digital farming currencies, then better shift to Venezuela and start your mining company. But be careful, as the country still has a high crime rate.
- Myanmar
Let'sMyanmar is also among the countries where you can mine digital currencies at reasonable prices. In other countries, electricity bills are so high that most people can't mine bitcoins. Myanmar is not such a country, as the electricity costs peanuts here compared with other countries. Let's move on to Aisa.
The country's economy is still weak, but Myanmar will not disappoint you if you plan to start your crypto mining farm. Also, as an incredible bonus, Myanmar is a fantastic tourist destination with numerous places to visit.
- Bahrain
Once again, the Middle East country. You can avail yourself of amenities at highly affordable prices, including your super-cheap electricity bills. Bahrain is among those countries where the cost of living is much lower than other countries.
If you are thinking of relocating to either Kuwait or Bahrain and starting up your crypto farming business would be a great idea. Even the government doesn't interfere much with the many rules and restrictions that attract more international companies to invest more in these countries. What else to wish for: a hot climate, friendly people, and cheap electricity?
- China
With such a strong economy as China has, surprisingly, it is also one of the cheapest countries to mine digital currencies. Paying electricity bills in China is so affordable that anyone would think of starting their own bitcoin farming company.
But the only factor is that you might face some government restrictions if you don't have enough connections. Currently, the country is facing some environmental concerns related to mining bitcoins. A few crypto farming companies have already been shut down. So, it might not be a good idea to mine bitcoins until there aren't energy-efficient ways of digital farming currencies.
Bitcoin mining in illegal countries
And at the end, I would like to warn you about places where mining is illegal. Many countries have decided to ban bitcoin mining and outlaw cryptocurrency altogether, including Algeria, Bangladesh, Egypt, Iraq, Morocco, Oman, Qatar, Tunisia, and, most notably, China.
Bitcoin mining hubs continue to adapt and change as countries develop different approaches to regulating and facilitating cryptocurrency and its mining. Anyway, one thing is clear. There are the requirements of a suitable bitcoin mining location, with cheap (and preferably renewable) energy at the top of the list. "Mining is location agnostic, so it can move to wherever the cheapest energy can be sourced," says McKeon.
Conclusion
In summary, it would be easy to declare New York the most excellent bitcoin hub on earth. But lessons from China have taught us that oppressive regulatory policies drive innovation away, and New York's environmental policies may come back to bite them.
There are still at least 5 destinations to mine crypto relatively cheaply. But as the situation in the world is rather turbulent and uncertain, some simple research and googling will keep you informed.
