Some countries in North America, Latin America, Europe, Asia, and Africa have low energy rates. The low cost of electricity in different regions makes it possible to decentralize Bitcoin mining.
A report from Arcane Research shows that the cost of mining Bitcoin is lower in Venezuela, Paraguay, the United States, and Canada. That study allows comparing the electricity expenditure of each country in the world, indicating that profits from that activity are higher using cheaper energy.
Data-driven analysis company Arcane Research stated that the strategic points to get the most out of Bitcoin mining are in certain parts of the world. Some countries in North America, Latin America, Europe, Africa, and Asia have a low cost of electricity.
Middle-Eastern country Kuwait offers the cheapest electricity service worldwide since its government subsidizes it. Arcane Research estimates that that nation produces an energy cost of USD 880 for every Bitcoin issued. Data from Cambridge Bitcoin indicates that that place represents 0.13% of the global hash rate.
Bitcoin is trading at around USD 62,247 and has accumulated a 2.6% profit in the past week, according to CoinGecko. Arcane Research states that the cost of energy is higher elsewhere than in Kuwait, but the difference is minimal. That allows keeping Bitcoin mining decentralized around the world.
Electricity is not the only expenditure that the Bitcoin mining activity has. It also has costs related to the equipment acquired, the climate of the place, and the government’s disposition.
Some Countries on Each Continent Have Cheap Energy
Saudi Arabia, Oman, Iran, Mongolia, and Kazakhstan are other countries in Asia that have low-cost electricity. The same is true in African countries like Algeria, Sudan, Ethiopia, Angola, and Zambia, which hold prices below USD 100,000 per Bitcoin.
Most European countries have intermediate prices reaching USD 20,000 per Bitcoin, the same as Argentina in Latin America. In most countries of the latter region, they may even reach USD 30,000 for mining that cryptocurrency.
The countries with the lowest cost of electricity are Venezuela and Paraguay, where it is below USD 10,000. Besides, both countries have regulated cryptocurrency mining, which is an advantage for the industry compared to the United States.
One of the biggest Chinese Bitcoin mining firms started operating in Paraguay. It is publicly listed on the Nasdaq stock exchange and seeks to open a farm in the South American country.
North America concentrates a large part of cryptocurrency mining, especially Bitcoin, which occurs on a large scale. The United States occupies first place in the ranking as the country with the largest territory with cheap electricity.
Canada is almost at the same level as the US since the nation has three large states, which is an advantage. For example, Quebec is now a center of interest for the cryptocurrency industry.
That Canadian province has gained popularity as a haven for cryptocurrency mining thanks to its low electricity rates. At the end of last year, the government encouraged the installation of mining facilities in the territory.
By Alexander Salazar
