Subscribe To Our Newsletter

    Get the latest crypto news right into your email box. No spamming. We hate it too. Only pertinent news you need to know

    Latest News

    Coinbase Fixing Problem That Halted Payments From US Banks

    October 9, 2022

    Binance May Spend Over $1 Billion This Year on Deals, CZ Says

    October 9, 2022

    Crypto Real Estate Is Here – Bitcoin Mortgages Are Just The Beginning

    May 1, 2022
    Facebook Twitter Pinterest LinkedIn
    RareHippo – Crypto, Bitcoin, Blockchain News & Views
    Facebook Twitter Pinterest LinkedIn
    • Home
    • Bitcoin
    • NewsWire
      1. Latest News
      2. Top Stories
      3. Features
      4. What’s Hot
      5. Must Read
      6. Trending
      7. Spotlight
      8. Editors’ Picks
      9. View All

      Coinbase Fixing Problem That Halted Payments From US Banks

      October 9, 2022

      Binance May Spend Over $1 Billion This Year on Deals, CZ Says

      October 9, 2022

      El Salvador’s Companies Barely Bother With Bitcoin

      March 19, 2022

      New Jersey legislation aims to prevent public officials from being gifted NFTs

      March 18, 2022

      Coinbase Fixing Problem That Halted Payments From US Banks

      October 9, 2022

      Crypto Real Estate Is Here – Bitcoin Mortgages Are Just The Beginning

      May 1, 2022

      Crypto’s Preferred Currency for Political Donations Isn’t Bitcoin. It’s Dollars

      March 19, 2022

      Meta Sued by Australian Watchdog Over Scam Crypto Advertisements

      March 18, 2022

      Binance May Spend Over $1 Billion This Year on Deals, CZ Says

      October 9, 2022

      Two Senators propose crypto legislation for tax exemption on capital gains

      May 1, 2022

      Wall Street Reluctantly Embraces Crypto

      May 1, 2022

      Warren bill draws outcry over broad terms, but seems unlikely to pass

      March 20, 2022

      Crypto Real Estate Is Here – Bitcoin Mortgages Are Just The Beginning

      May 1, 2022

      Russia-Ukraine War Is Bringing Out the Good, Bad, & Ugly of Cryptocurrencies

      March 18, 2022

      The ‘world’s most advanced’ digital human wants you to buy her NFT art

      March 15, 2022

      FTX crypto exchange wins license in Dubai to open regional headquarters

      March 15, 2022

      Crypto Startup Founded by Ex-Meta Employees Raises $200 Million

      March 16, 2022

      U.K. Crime Agency Wants to Regulate Crypto Transaction Mixers

      March 15, 2022

      A Wall Street Quant Turns His Crypto Firm Into a Unicorn

      March 14, 2022

      Standard Chartered’s crypto custodian to help clients earn yield on token holdings

      March 14, 2022

      Man passing as UN affiliate convicted for crypto scheme

      March 18, 2022

      The Future of Crypto Is Boring — and Bright

      March 15, 2022

      Investors turn to crypto funds, companies as Russia-Ukraine crisis escalates

      March 15, 2022

      Binance Wins Crypto Licenses From Dubai, Bahrain

      March 15, 2022

      Why Bitcoin’s Environmental Problems Are So Hard to Fix

      March 16, 2022

      Americans Want Crypto From Their Banks

      March 15, 2022

      Why Decentralized Exchanges Are Important in the Crypto Economy

      March 10, 2022

      Binance plots M&A spree as regulators scrutinize crypto trading unit

      March 10, 2022

      Amid New Executive Order, White House Director Sheds Light On Crypto Policy

      March 16, 2022

      Bitcoin Evangelist Saylor Tells Economists Why They’re Wrong

      March 15, 2022

      Crypto Mania in Texas Risks New Costs and Strains on Shaky Grid

      March 15, 2022

      Bitcoin’s scared of commitment, Mr. Biden

      March 15, 2022

      Coinbase Fixing Problem That Halted Payments From US Banks

      October 9, 2022

      Binance May Spend Over $1 Billion This Year on Deals, CZ Says

      October 9, 2022

      Crypto Real Estate Is Here – Bitcoin Mortgages Are Just The Beginning

      May 1, 2022

      Two Senators propose crypto legislation for tax exemption on capital gains

      May 1, 2022
    • Altcoins
      • Ethereum
      • XRP-Ripple
      • Solana
      • Dogecoin
      • Cardano
      • Shiba Inu
    • Topics
      • Cryptocurrencies
      • Investments
      • Markets
      • NFTs
      • DeFi
      • ETFs
      • DAOs
      • Crypto Regulation
      • Metaverse
      • Blockchain & Web3
      • Blockchain Gaming
      • Crypto Exchanges
      • Crypto Mining
      • Stablecoins
      • Cybersecurity
      • Digital Currencies – CBDC
      • Crypto Book Reviews
      • Technology
      • Internet of Things
    • Opinions
    • Explainers
    • Press Releases

      Former Uber LatAm Head of Policy Leads Crypto Ride-Hailer Drife Toward Planned Global Expansion

      March 7, 2022

      European index provider for crypto assets Vinter raises $3.4m funding

      February 22, 2022

      PR – British crypto processor brings in $60 million for expansion in Europe

      January 25, 2022

      PR – CoinMENA obtains 2nd crypt0 license from European Union

      January 25, 2022

      NFT investment specialist looks to acquire Pluto Digital for £96m

      January 24, 2022
    RareHippo – Crypto, Bitcoin, Blockchain News & Views
    Home»Crypto Mining»Which nations are the new harbors of miners, & where can Ether, Bitcoin be successfully mined
    Crypto Mining

    Which nations are the new harbors of miners, & where can Ether, Bitcoin be successfully mined

    By Elena Perez
    February 20, 2022By Cointelegraph7 Mins ReadNo Comments
    Facebook Twitter LinkedIn Pinterest Reddit WhatsApp Email Tumblr VKontakte Telegram
    Share
    Facebook Twitter Pinterest Reddit WhatsApp Email LinkedIn Tumblr Telegram

    One of the main themes among the crypto community in 2021 was China’s aggressive policy toward mining, which led to a complete ban on such activities in September. 

    While mining as a type of financial activity has not gone away and is unlikely to disappear, Chinese cryptocurrency miners had to look for a new place to set up shop.

    Donate to RareHippo Now!

    Many of them moved to the United States — the world’s new mining mecca — while some left to Scandinavia and others to nearby Kazakhstan, with its cheap electricity.

    Mining activities can’t stay under the radar forever, and governments around the world have begun to raise concerns over electricity capacity and power outages. 

    Erik Thedéen, vice-chair of the European Securities and Markets Authority — who also serves as director general of the Swedish Financial Supervisory Authority — has called for a ban on mining proof-of-work cryptocurrencies like Bitcoin (BTC) in Europe.

    As jurisdictions around the world begin to crack down on mining-related activities, it begs the question: “Where is it still profitable, and legally favorable, to mine crypto?”

    North America

    It’s no secret that the U.S. is the main country for crypto mining, particularly in the Lone Star State, Texas. After the exodus from China, crypto miners and billions of dollars of capital flooded into the southern state.

    This is largely due to state policy, with Governor Greg Abbott having actively supported the Bitcoin industry.

    Philip Salter, CEO of crypto mining firm Genesis Digital Assets, told Cointelegraph the reason the state became a popular destination for miners:

    “The most prominent location for miners worldwide may be Texas right now. Its huge amounts of wind and solar power are causing a surplus of affordable energy. Privately owned power grids ensure a fast path for new projects, without being hindered by slow bureaucracy. The benefits of Texas aren’t so new though. Miners started building there already years ago, even if not as aggressively as now.”

    Texas has experienced its own problems with electricity infrastructure, with massive blackouts affecting much of the state in 2021 amid unseasonable winter storms. But miners there have been relatively understanding about electricity consumption, and large companies have even periodically turned off equipment to give priority to residential consumers and critical infrastructure.

    America’s northern neighbor, Canada, has also been actively attracting mining companies. Recently, authorities in Alberta invited cryptocurrency miners to the province, touting its cheap electricity prices thanks to an abundance of local natural gas.

    Latin America

    Latin American countries have been expending considerable effort to attract miners, with El Salvador, in particular, showing a favorable attitude toward mining. The country was the first in the world to recognize Bitcoin as legal tender.

    The Salvadoran government has not hesitated to directly invest in Bitcoin and even plans to build a city dedicated to the preeminent cryptocurrency where electricity to mine BTC will reportedly come from volcano-fired geothermal plants.

    Costa Rica is also gradually becoming mining-friendly due to low electricity prices. Thanks to mining, a hydroelectric power plant that was closed during the COVID-19 pandemic has now reopened. 

    Large crypto companies have also begun to set up operations in Costa Rica. Chia Network, a blockchain network created by BitTorrent founder Bram Cohen, has agreed to provide technical services for Costa Rica’s national climate change initiatives.

    Argentina was very popular among miners until the government decided recently to cut subsidies for miners and raise taxes on mining activities. So far, these financial policy changes for mining are limited to the province of Tierra del Fuego, which is known for its cold climate.

    Nevertheless, Argentina remains a good place for mining farms even after the electricity price increases, keeping in mind the energy crisis in competing regions like Europe. 

    Mining is still possible in Europe

    Crypto mining operations in Europe remain relatively limited, as high electricity prices amid the energy crisis and a generally skeptical attitude toward cryptocurrencies from regulators make crypto firms think twice before locating to the continent. 

    Indeed, the Nordic nation of Iceland was previously a hotspot for Bitcoin mining, with its subarctic volcanic landscape providing cheap electricity and low cooling costs for mining farms.

    Crypto news & Views
    One of the main themes among the crypto community in 2021 was china’s aggressive policy toward mining, which led to a complete ban on such activities in september.  
    A mining farm of Genesis Mining in Iceland. Source: Marco Krohn.

    However, late last year, the country’s national electrical company, Landsvirkjun, cut the amount of power it would provide to energy-intensive industries like Bitcoin mining and aluminum smelting, citing capacity concerns. 

    Despite limitations on the continent, there are a few spots in Europe where miners have decided to set up shop where geography and climate play an important factor in attracting business.

    In Georgia, located in the Caucasus region, the large number of hydroelectric power plants built during the country’s time as a Soviet republic — along with its relatively modest population — have provided a large amount of cheap electricity for miners.

    Major crypto mining companies have already set up operations in the country. Back in 2014, Dutch mining company Bitfury opened its first data center, with a draw of 20 megawatts, in the eastern Georgian city of Gori.

    The success of Bitfury opened the eyes of many Georgians who actively began to acquire powerful video cards and create their own small crypto mining farms. According to the World Bank, 5% of the Georgian population was engaged in crypto mining in 2018.

    It should also be noted that Russia remains an epicenter for crypto mining thanks to low energy costs and a cold climate.

    Andrei Loboda, public relations director of BitRiver — the largest cryptocurrency mining colocation services provider in Russia — shared with Cointelegraph some specific regions where it will be convenient for miners to work if the Russian government becomes more supportive of cryptocurrencies:

    “According to BitRiver, today, about 300,000 individuals are engaged in mining Bitcoin alone in the Russian Federation. Our company performs energy-intensive, high-speed computing in data centers in a number of the Russian Federation regions, including the Irkutsk Region and the Krasnoyarsk Territory. The green and digital technologies that we implement in our work as part of the digital energy transition have already given an additional impetus to the development of the regions.”

    Is mining worth it?

    Geography is a critical element for miners to consider, be it for electricity and cooling costs or regulatory concerns. However, there are some expenses, like hardware, that miners will carry with them wherever they go.

    With demand for mining equipment on the rise and a recent slump in the markets after 2021’s bull run, when is mining worth it with all the hardware costs?

    One of the main themes among the crypto community in 2021 was china’s aggressive policy toward mining, which led to a complete ban on such activities in september.  
    A homemade Bitcoin mining rig with GPUs. Source: Bitcoin Wiki.

    2021 was the most profitable year for mining Ether (ETH) with graphics processing units since 2016. This is not surprising, as Ether’s price more than quadrupled last year. But the main issue for miners is electricity and equipment expenses, and the price of the latter is growing rapidly.

    Nevertheless, while the profitability of Ether mining remains high, the payoff period for equipment purchases is growing, partly due to the London hard fork in August 2021 that reduced the payout for each block mined from 8–20 ETH to 2 ETH.

    Another negative factor for miners will be the much-anticipated transition of the Ethereum blockchain to a proof-of-stake consensus, after which they will have to start mining altcoins or recertify as stakers on the network.

    The Bitcoin network’s mining difficulty recently hit an all-time high despite the strong decrease in BTC’s price in January, which hit a monthly low of around $34,300. 

    It is surprising that, against this background, the cost of ASICs didn’t fall. At the same time, the ASIC payoff period this year is a little over 1,000 days, or almost three years. Not everyone can afford to carry those expenses for such a long time.

    There are a multitude of changing factors that miners have to take into consideration, but one thing is clear: Cryptocurrency mining is a flexible, adaptive industry, and firms have proven they are willing to relocate to more beneficial locations should their current one prove less than ideal.

    Read full story on Cointelegraph

    Crypto Mining
    Previous ArticleWeb3 might be crypto’s key to the mainstream market
    Next Article Ethereum Founder Buterin Says Crypto ‘Welcomes’ Another Winter

    Related Posts

    Coinbase Fixing Problem That Halted Payments From US Banks

    October 9, 20221 Min Read

    Binance May Spend Over $1 Billion This Year on Deals, CZ Says

    October 9, 20223 Mins Read

    Crypto Real Estate Is Here – Bitcoin Mortgages Are Just The Beginning

    May 1, 20224 Mins Read

    Two Senators propose crypto legislation for tax exemption on capital gains

    May 1, 20225 Mins Read

    Wall Street Reluctantly Embraces Crypto

    May 1, 20225 Mins Read

    Warren bill draws outcry over broad terms, but seems unlikely to pass

    March 20, 20225 Mins Read
    Add A Comment

    Leave A Reply Cancel Reply

    Donate to RareHippo Now!
    Latest News

    Coinbase Fixing Problem That Halted Payments From US Banks

    October 9, 2022

    Binance May Spend Over $1 Billion This Year on Deals, CZ Says

    October 9, 2022

    Crypto Real Estate Is Here – Bitcoin Mortgages Are Just The Beginning

    May 1, 2022

    Two Senators propose crypto legislation for tax exemption on capital gains

    May 1, 2022

    Wall Street Reluctantly Embraces Crypto

    May 1, 2022
    Follow US & Win Prizes
    • Facebook
    • Twitter
    • LinkedIn
    • Pinterest
    Don't Miss
    NewsWire

    Bitcoin whipsaw shows crypto’s ‘constant state of price discovery’

    January 25, 20225 Mins Read

    Bitcoin suffered yet another brutal bout of risk-aversion on Monday, briefly tumbling by over 5%…

    Bots Are Overrunning Crypto Networks Like Solana as They Hunt for Profits

    February 3, 2022

    Dexioprotocol to be listed on second major exchange

    February 21, 2022

    Bahrain Completes Cross-Border Transfer Test Using JPMorgan Blockchain

    February 14, 2022

    Subscribe to Our Newsletter

    Get the latest crypto news right into your email box. No spamming. We hate it too. Only pertinent news you need to know

    Crypto news & Views
    Facebook Twitter Pinterest LinkedIn
    • Home
    • Privacy Policy
    • About Us
    • Donate to RareHippo
    • Get In Touch
    • NewsWire
    © 2023 RareHippo. Powered by 8 Dimensions

    The content of this website is for informational purposes only and is not intended as a substitute for investment or financial advice.

    Type above and press Enter to search. Press Esc to cancel.