When one wants to mine cryptocurrencies it is usually a spontaneous decision, which isn’t going further than setting up a small mining rig. However, there are those, who have finance and resources to build a farm – a colossal cluster of machines solving cryptographic tasks day and night. Hence, by the word “rig” I will be addressing these farms.
Nevertheless, a definite decision coupled by funds is not enough to start mining. One should sit and calculate the profit so not to sell the cluster after a month of exploitation, understanding that difference between money spent on cooling and electricity and money “dug out” is not substantial to continue mining.
So what one needs to take into consideration to become a Bitcoin millionaire? Current difficulty per block, price of the given digital coin, the laws are not a thing to be ignored.
However, among other things it’s the price per kWh – main scourge of those who want to mine for digital gold. The thing to understand is that prices on electricity change from country to country but price of the cryptocurrency remains relatively the same as long as there is a branch of big exchange.
In case you plan on mining Central Europe I beg you to reconsider. Maybe with the salary levels there it seems that price range of 19 US cents (forward on all prices will be in US cents) per kWh in France to 41 per kWh in Denmark isn’t really anything special, comparing it to other countries it feels ludicrous.
Next in our list are Japan and Australia with 26 and 29 cents per kWh. Again, I don’t see why anyone would want to mine there. With prices like that it’s just burning money.
Biggies like Russia, Canada, Mexico and US are much more attractive looking back at the crossed out countries. However, the Mexican geographical and Russian political climates aren’t exactly suitable for establishing a rig. I wouldn’t count on US for too long though, sooner or later regulations and bureaucracy will choke cryptocurrency there.
Brace yourselves the lowest prices are coming. Let’s start with Cuba and Kuwait 4,5 and 1 cents per kWh accordingly. Yes, you read it right – electricity in Kuwait costs 40 times less than in Denmark. However, I would really want to see how you are going to cool your tech down to working temperature.
Not that it can’t be done, but does building an underground warehouse with some serious conditioning worth it? In the long run – maybe, but I wouldn’t bet my money on that.
Next couple of countries looks great. Iceland with 4 cents per kWh and Ukraine with 3 cents. Well, Ukraine is not the best place to start an enterprise like this currently. I would go as far as to say, that at this time starting anything in Ukraine would be a bad idea.
Iceland would be an ideal mining place, a cryptocurrency nexus mining anything. The price, the natural cooling (it isn’t called Iceland for nothing), but remembering the crisis of 2009 the country’s financial regulators forbade cryptocurrencies to prevent money from leaking abroad. Maybe somewhere in the future.
So here we are and the winner is China! Yes there certainly are some considerations regarding government, but for mining it’s simply heaven. The price per kWh is OK – 8 US cents, not the lowest but there is another factor. The electronics are cheaper than anywhere in the world, and you don’t need to ship it across the globe.
So, you think you have what it takes to mine hard? Then I suggest you consider China as a place for a cluster. Just go somewhere north, closer to the mountains. Average temperature of -4 will save you much trouble.