There is no doubt in the fact that the cryptocurrency market is taking control all over the world. People across all geographic locations are trying to understand the basics of cryptocurrencies these days and invest in them.
But if you are not just in the cryptocurrency market for investment by also want to mine various cryptocurrencies, can you do it from anywhere in the world easily? In this article, I will be helping you out to understand what country is the best for you if you want to mine cryptocurrencies.
Even the most successful and popular cryptocurrencies like Bitcoin and Ethereum have certain countries from where you can mine them easily in 2022. So keep on reading the article if you are interested in knowing all about crypto mining and the landscapes that affect it.
Introduction
At the beginning of 2021, there was a buzz in the cryptocurrency market regarding China’s aggressive tactics towards crypto mining, which led to the complete stoppage of such mining activities in September 2021. Well, mining is similar to other financial activities and thus can never stop completely, so the aggressive cryptocurrency miners in China moved to various other countries where they could mine cryptos at ease. Some of them moved to the United States, whereas some moved to Scandanavia and Kazakistan where electricity is really cheap.
But this mining craze has led to governments all over the world getting concerned about the amount of power and electricity each and every mining setup can consume. In fact, even the vice-chair of European Securities and Market Authorities has suggested that all the mining proof-of-work cryptocurrencies like Bitcoin should be banned in all the countries across Europe.
So in such a situation, what is the best country for you to mine cryptocurrencies in 2022?
How Crypto Mining Works?
Although crypto mining has been in the market only for 12 years now since the creation of Bitcoin in 2009, it has still become very popular in today’s world. You must have heard about Bitcoin mining, Ethereum mining, but does it really mean by the term ‘mining’? What do people mean when they say “bitcoin mining”?
Well, basically, mining means the process of creating new cryptocurrencies. Just like iron ores, coal, and other such valuable metals are mined from beneath the earth’s surface, similarly, cryptocurrency mining is the process of creating new crypto coins through computer setups. In this, the computers are connected to power supply all the time. The computer then solves various mathematical and cryptographic puzzles and creates new coins.
But why do people need to mine cryptocurrencies? Well, most of them treat crypto mining as an important source of income. And for some, crypto mining gives them the freedom to open assets that will be free from government and banks intervention. But, the real thing is, it does not matter what the reason behind it is, crypto mining is still the most popular and area of interest for big and small investors.
In the process of mining, data gets validated and also adds transaction records to a public ledger also popularly known as the blockchain. All the cryptocurrencies work on certain blockchain networks. This makes sure that all the transactions that take place on this network are completely secure and safe from fraudsters and cybercriminals.
And how does it work? Well, unlike traditional banks and centralized banking systems, there are no central authorities in cryptocurrencies. There are decentralized systems and everyone can participate in the cryptocurrency network.
It allows you to make transactions in return for goods and services without having to involve banks and government institutions in the process. You can also keep these cryptocurrencies as a digital asset and just like sticks market work, sell it later on and gain a huge amount of profit from it. That is exactly why it is called a decentralized digital currency.
Another general question that might come to your mind is, is crypto mining legal? Well, in general, yes, crypto mining is legal in almost every country. But this also depends on two factors – firstly, in which geographical locations you are living in, and secondly, whether you are using legal methods to mine cryptos. These two factors will determine whether or not your crypto mining is legal.
You will be mining cryptos illegally if you use illicit ways to mine them. For example, some people use Javascript in their computers and also install malware on unsuspecting people’s devices and in turn hijack their computer’s processing power. Fraudsters use such a “cryptojacking” method to mine cryptos easily.
But crypto mining is viewed differently in different geographical locations. Some countries feel that cryptocurrency incomes should be taxed whereas some governments believe that such assets should not be taxed. So crypto mining really depends on the geographical location that you are staying in.
Best Places for Crypto Mining
North America – There is no lying about the fact that the United States is the best place to mine cryptocurrencies. If you stay in the Lone Star State, Texas, you are going to mine cryptos and surely earn a lot of profits. Even the Chinese investors and miners have invested billions of dollars in the southern state for crypto mining. And thanks to Governor Greg Abbott, who has been supporting such mining activities in the state.
It is true that there have been massive power outages in the state of Texas in the year 2021 due to crypto mining. But even the big companies have understood the problem regarding power consumption and thus have been periodically turning off their whole mining set up so that the residents of the state and other such critical infrastructures do not face any problem.
Even Canada has also become a great place for miners to set up their equipment and mine cryptos. Even the government officials of the state of Alberta have invited various crypto investors and miners to come to that particular province and mine efficiently owing to the cheap electricity prices in the province.
Latin America – Even the Latin American countries have been trying to attract crypto miners to set up their mining in the countries. El Salvador was the first country to recognize Bitcoin as a legal tender and thus promote its usage. The country has also expressed its desire to invest directly in all the bItcoin projects and create a city where miners would not have to worry about electricity as power would be supplied from volcano-fired geothermal plants.
Other than that, Costa Rica is also trying to attract miners and become more miming-friendly. It has very low electricity prices which is almost like heaven to the crypto miners. That is why a lot of large companies have also set up their mining operations in Costa Rica.
Before the new government policies, even Argentina was a very famous mining country. But recently, the government decided to cut off all the subsidies provided to the miners and tax them for mining activities. But, Argentina still remains one of the good places for crypto miners.
Europe – Europe is not such a good place for miners to mine crypto and earn a huge amount of profits. The crypto operations there are limited due to the energy crisis and high electricity prices. This is what makes the crypto miners think twice before setting in their mines in Europe.
There was a time when European countries like Iceland were a great place for Bitcoin mining. The subarctic landscape would provide cheap electricity for the miners. But in 2021, these countries stopped providing the amount of energy these power-intensive industries like Bitcoin mining were consuming.
Although, Russia still remains an important place or an epicenter for cryptocurrency mining. Due to its low cost of electricity and cold climate, it can still provide the miners with the best possible mining facilities.
Crypto Mining: Is it Worth it?
Are you planning to start mining in 2022? But are you not so sure whether it is still profitable to mine cryptos or not? Well, according to research, yes, crypto mining is still profitable in the year 2022.
But, along with it, it is also true that your profit margin totally depends on the price of electricity that you are paying. That means the area you are staying in and the electricity rates in that particular area play a great role in deciding how much profit you will earn. The lower the electricity price you pay, the more profit you will earn.
The first thing you need to make sure of is owning your own mining hardware. If you already have it, there is no reason why you should not start mining cryptocurrencies. If you think that mining might damage your hardware, well experts believe that mining is safer than playing games on your hardware. They believe that mining does not damage GPUs.
Before understanding whether it is profitable to mine in 2022, you must understand what the mining profitability rate was in the previous years. It is true that in April- May of 2021, the profits of crypto mining dropped 40% but it is also true that the profits in 2021 were abnormally high. People back then covered their GPU cost by ming crypto in just a few months. The rate of profit even after a 40% drop was still much higher in 2021 than it was in 2018 or 2020. In 2018, sometimes the GPUs would not even be able to create any profits.
So, is it worth it to mine crypto in 2022? Well, you would earn approximately 0.0004 BTC per day but that is also based on the first month of 2022. There has been a fall in the crypto market and based on the current price, which is $40,000, you would earn approximately $16 per day.
Conclusion
If you look at the history of cryptocurrencies and analyze it, you will understand that 2020 was the best year to mine cryptocurrencies, specifically Bitcoin. At that time, Bitcoin returned about 0.0008 BTC per day. It has been seen that mining in a bear market, which means when the fiat earnings are quite low is the best time.
But it is really hard to predict how the market is going to be in 2022. Ethereum is already trying to move to Proof-of-Stake and that can change the crypto market completely. But if that does not happen, you can expect normal profits in 2022 as well. So do your own research and get started with crypto mining in 2022!