Bitcoin mining remains a fast-growing industry and, while some countries are more open to the idea, some are stringent with restrictions on the industry. However, with more and more countries now introducing crypto regulations and working to attract Bitcoin investors, people have more options than ever to choose from.
Drawing on recent data from Investment Monitor and a spatial analysis of global Bitcoin mining from nature.com, we'll have a look at some of the best Bitcoin mining destinations, including some locations that are expected to be future hotspots.
1. The United States
The US is already one of the hottest Bitcoin mining destinations and accounted for more than 35 percent of the global hashrate in 2022. Political stability, relative market capture, low energy costs, and high interest in cryptocurrency make it a good choice for miners. Moreover, it's home to a large number of crypto-related startups.
The country attracted a swath of miners who left China after their ban on Bitcoin mining, sparking competition among states to attract miners. Miami, Florida, for example, wishes to be a top star on the mining map. Similarly, Texas saw a great increase in Bitcoin mining activities after the Chinese ban.
The country hosts nearly a third of global crypto mining operations, consuming over 1.7 percent of the nation’s electricity, roughly equaling all residential lighting. The US is expected to attract more investment in the field but it's believed that states that prioritize renewable energy will be a preferred option for most investors.
2. Russia
Despite the current geopolitical situation in the region, Russia still accounts for a global hashrate of 11.23 percent. But, with the trading ban and fewer foreign investors choosing the nation, it might soon find it difficult to hold its place. Still, Russia is popular due to locals who invest heavily in mining equipment.
Low energy prices make it a very attractive country for miners. Most rigs are located in the Siberian region for this reason; however, some other cities are now also housing miners and the country seems to be heavily buying ASIC devices during the current bear market.
The Russian Association of Cryptoeconomics, Artificial Intelligence, and Blockchain (RACIB) is trying to entice investors. However, we must mention that the Russian government recently introduced 'crypto miner tariffs' that may change things.
3. Georgia
Georgia is fast turning out to be a pro-Bitcoin mining country thanks to low electricity prices and a pro-business government. In fact, the country is working to move its records onto the blockchain and wants foreigners to start mining in the country. However, on the downside, banks in the country are not crypto-friendly, which can be an issue for some but we believe that Georgia will continue to grow and attract more Bitcoin miners due to its easy visa policy and the low cost of starting a mining operation.
4. Kazakhstan
Kazakhstan has proven to be a surprise contender due to its crypto-friendly policies and low electricity costs. The region is home to a large number of businesses, including data centers, that fled the Chinese market due to the ban, including big names like Enegix and BIT Mining. It currently accounts for 18.10 percent of the global hashrate.
The country made a controversial decision to introduce electricity surcharges for miners and a crypto-mining tax, yet it still continues to attract cryptocurrency enthusiasts. Some argue that Kazakhstan may not continue to be a mining hub given recent currency volatility power deficits, and riots that resulted in power outages. That being said, we believe that Kazakhstan will remain among the top 10 countries due to a pro-Bitcoin government.
5. Canada
Canada has proven to be a good option for investors due to cheap electricity and ease of starting a mining business. The country produces almost 10 percent of the global hashrate but not all provinces are popular among investors.
Ontario, for example, isn't a very popular option due to stringent regulations and rising energy costs. On the other hand, Quebec and Alberta are extremely famous due to their mining-friendly programs. However, Hydro-Quebec, Quebec's majority energy provider, has recently proposed to suspend 270MW of electricity previously allocated for crypto mining operations.
The country has even attracted big names such as Black Rock Petroleum. Moreover, the country's mining scene is known for being eco-friendly and many carbon-neutral mining firms are operating in the region.
6. Malaysia
Here is another Asian country that is mining-friendly and known for being a safe haven. It presently has a global hashrate of about 4.6 percent. However, Malaysia has been in the news due to some sticky situations, including the presence of illegal local mining hubs and theft linked to cryptocurrencies and electricity. Recently, a theft worth 7 million was discovered and the police think that there's a large network of illegal mining operations.
Despite this, the country has continued to attract investors and is currently the world's 6th largest mining nation.
7. Ireland
Best known for having no restrictions on the mining of Bitcoin or other digital currencies, Ireland boasts an estimated 3% share of the global hash rate.
Energy in the country isn't as cheap as in some other nations on this list, yet it still attracts investors due to safety and friendly policies. However, Bitcoin adoption has fallen in recent times, and now with Europe about to enter into a recession, Ireland may have a difficult time attracting people interested in cryptocurrencies.
8. Germany
This might come as a surprise to some but Germany is among the fastest-growing countries when it comes to Bitcoin mining and has already dethroned some other nations like Ireland. The country is home to the EU's largest mining company, Northern Data.
Crypto mining businesses face considerable tax laws in Germany, yet the overall business environment remains encouraging.
The Future Of Bitcoin mining-friendly
With the absence of China, we can expect these and a few other countries to attract enthusiasts interested in Bitcoin mining. The US will likely continue to be at the top spot as it has been in 2022 given that equipment and green energy resources in the region are relatively accessible and cost-effective.
Similarly, some Asian countries like Malaysia and Kazakhstan are also rising on the charts and will continue to be big names.
Wherever you are in the world, we encourage you to reach out to us at Asic Jungle as a dedicated resource to support your mining operation. No matter how big or small, our team can connect you to the equipment and people you need to move to the next step in your mining journey.
