The crypto mining industry has been going through quite a lot of hard times lately. Especially so during the crypto winter. During the crypto winter, it was much more expensive to mine some of the most lucrative cryptocurrencies.
For example, in some countries, mining one Bitcoin cost around 4,000 – 5,000 USD. This was while the coin itself cost 3,000 USD at its lowest point during the end of 2018.
However, now the market is alive once again and miners are celebrating. Let’s look at the top crypto mining countries out there and why it’s such a lucrative business there.
Crypto mining in China
Although cryptocurrencies are quite a controversial topic in China, it’s still extremely lucrative for locals to mine here. Back in 2018, the industry did however experience some crackdown. This was because the government distanced itself from blockchain-backed projects. The reason for that was because of all the money laundering and scamming cases happening in mainland China.
Now though, the Communist Party of China has seen the amount of foreign assets these operations can bring to the country. Therefore, they are yet again skeptical, to a point where they’re considering to ban mining activities completely.
China has very cheap labor force. Considering that, we understand why the government would like to shy away from the mining activities. Mining activities encourages mass production to a point where the government can’t control it anymore.
Backed by the fact that China is the largest crypto mining country out there, there has also been reports that the majority of cryptocurrency assets in the world is currently circulating on the Mainland.
Crypto Mining in Georgia
Despite the fact that Georgia is a very small country when compared to a giant such as China, it’s safe to say that it’s impressive to see them achieve such large numbers.
The major crypto mining company located in the country is Bitfury, which was once mining around 15% of all Bitcoins available on the market.
The reasons why Georgia is so high on the list is because of its tax policies on crypto mining operations. Also, the overall costs for operating a mining company are much lower in Georgia.
The local policymakers are very friendly towards the blockchain industry and encourage offshore companies to relocate to the country. In fact, mining one Bitcoin in Georgia cost just 3,000 USD when the Bitcoin was at its lowest price in 2018.
You can imagine just how much the miners are now generating thanks to BTC’s surge above 10,000 USD once again.
Iran (on its way out)
Although Iran is definitely not on the same level as the United States or Canada in terms of volume, it still needs to be emphasized just how lucrative crypto mining in Iran actually is.
The country is notorious for its subsidies on energy payments, meaning that most of the population pays only a fraction of the actual cost on energy and the rest is covered by the government.
The crypto miners managed to use this policy to their advantage and make their mining operations much much cheaper. The local news in Iran reported that mining one BTC in Iran cost somewhere around 3,500 USD. This was during BTC’s lowest point in 2018.
Now though, the country’s energy minister has spoken out against crypto miners in Iran. He called them freeloaders for using the nation’s resources to their advantage.
It’s not clear if crypto mining will revert to unsubsidized energy payments in the country, but it’s clear that it has become much less safe.