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- Bitcoin and mining were some of the words most heard in the year 2021, which witnessed significant changes in the industry.
- The Chinese crackdown resulted in countries like the U.S., Canada, etc., seeing a surge in Bitcoin mining.
- More restrictions, taxations and regulations are expected this year.
2021 proved to be a significant year for the crypto industry. Bitcoin witnessed its All-time high. From El Salvador accepting it as a legal tender to China banning cryptocurrency and its mining. The year witnessed considerable changes in the world of cryptocurrencies. Resulting in these changes influencing the market.
Things to be kept in mind:
The factors to be considered while looking for Bitcoin mining-friendly countries are the energy consumptions that mining does. The operations are more accessible in countries with cheap and readily available electricity. The amount of heat the mining setup emits becomes another concern for environment lovers.
Another factor to be considered is the government regulations of a country, for some countries like China, Oman, Morocco have a ban on cryptocurrency. And some countries are still skeptical about virtual currency.
Top 5 countries to be considered for Bitcoin mining:
The United States
If there’s a specific country that had the extreme effect of China’s ban on cryptocurrency, it’s the U.S. As the miners from China fled to other countries for opportunities, the country became the hashrate capital of the world. According to statistics, in comparison to September 2020, the hashrate in the U.S. witnessed a surge of 428%. Some states in the country are mining hot spots. For instance, Texas and New York saw a considerable increase in mining activities after the Chinese crackdown.
Russia
Russia is one of the mining locations one can consider. It has a hashrate of around 11.23% globally. The energy prices in Russia are low, especially in the Siberian Region. In 2021, a Russian miner imported 20,000 mining rigs in the country, which was the biggest import of this kind.
Canada
Canada is another country which saw a surge in crypto mining activities after China’s ban. The reason that the electricity prices are low, the global hashrate is 10% in Canada. And the mining activities here have an eco-friendly essence in them. Like the crypto mining operation, MintGreen plans to supply North Vancouver with the heat generated from the mining operation, which is planned to start this year.
Malaysia
This country has a global hashrate of 4.6%. Although in the summer, the country took some strict actions. The government got strict with an illegal mining hub. Local authorities shut down an operation after a 600k theft.
Kazakhstan
It contributes 18.10% to the global hashrate. Being a neighbour of China, Kazakhstan became a spot for miners to flee. The country has low electricity prices. China-based companies like BIT Mining and Enegix moved thousands of mining rigs to the country. But in the late last year, the country saw an electricity deficit after the heavy mining activities. After the major riots resulting in a power outage earlier this year, miners became skeptical about the mining activities as the outages affected the mining capacity.
Apart from these other countries that can be considered, the Islamic Republic of Iran, Germany, Ireland, etc., are miner-friendly destinations. 2022 has just started, and it’s anticipated that the year might witness more crypto regulations, restrictions and taxes. It might also include more sustainable mining activities.
The world is still witnessing a lot of changes related to the industry. Not only cryptocurrency but also concepts like blockchain technology, NFTs, and Metaverse are also quite popular and fascinating. There are significant entities adopting them in some way or the other, and there are also people who aren’t favourable of it. But with an increase in adoption, it seems like they are here for the long run. No matter the existing bans and the skepticism related to virtual currency, mining might flourish where it’s already being done.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
