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The Cheapest (and Best) Places for Bitcoin Mining

Mining Bitcoin

Where are the cheapest and best places for Bitcoin mining?

Bitcoin mining takes energy – and lots of it – so it’s not the cheapest past time. Dedicated Bitcoin mining machines require a cold climate, low-cost electricity, and high-speed internet for optimal results.

Here’s a list of some of the most popular places for Bitcoin mining right now.

Iceland

Iceland has been growing in popularity as of late. Iceland meets all the requirements for Bitcoin mining: cool temperatures, low-cost energy, and high-speed internet. The country has an abundance of geothermal energy that can easily power Bitcoin mining machines.

Iceland may also be popular because it offers renewable energy options. Bitcoin mining has been criticised in the past by environmentalists as a major threat to the climate. Others combat this argument, saying that we don’t know the final numbers.

Regardless of which side of the argument you sit, focusing on renewable energy sources for Bitcoin mining shouldn’t make things worse, at least.

Unfortunately for Iceland, the country might be proving to be too popular for Bitcoin mining. Iceland could end up losing all its power entirely as a result of Bitcoin mining.

That leads us to our other locations…

>> Phones hacked to mine crypto

Canada

Crypto mining companies are just beginning to dip their toes into the Great White North that is Canada. Mining locations range across the country, with much of the focus being in Vancouver, BC, and in the province of Quebec.

A company called Hydro Quebec is cashing in on the incoming miners, offering electricity costs of $0.0248 per kWh for data centers and $0.0394 per kWh for miners. That’s approximately 50% to 75% less cost per kWh than comparable locations in North America.

>> Bitmain considers expanding Bitcoin mining into Quebec

Russia

Undoubtedly a cold country, Russia has some of the cheapest electricity in the world. The country also offers alternative energy solutions, such as hydroelectricity and nuclear power.

Russia has announced plans to build a large-scale cryptocurrency mining operation, making it an upcoming, rather than current, spot for Bitcoin mining. Much of the mining equipment will end up in private homes to maximize Russia’s 20 GW power capacity surplus (but how secure will this be?). Dmitry Marinichev, the man who announced this plan, stated that “Russia has the potential to reach up to 30 percent share in global cryptocurrency mining in the future.”

If all goes according to plan, Russia is looking to be a popular spot for Bitcoin and other crypto mining.

>> Mining for charity

The cheapest Bitcoin mining location is…

Actually none of the above! According to recent data released by Elite Fixtures, a lighting & furniture firm, Venezuela rings in as the cheapest location for Bitcoin mining, at $531 per BTC.

Mining Bitcoin
Source: CNBC

The data was configured from governments, utility firms, and the International Energy Agency sources. The price of power consumption was based on the averages from the three most popular cryptocurrency mining rigs.

Interestingly, many of the countries listed as the cheapest locations for Bitcoin mining wouldn’t exactly be described as cold-climate locations. That makes me wonder how much cooler temperatures actually end up factoring in. Evidently not as much as cheap electricity rates.

>> Alibaba launches crypto mining platform

Featured image: The Merkle

  • john

    I’d say the best place would be Germany on Sunny/windy days, on days like that they have an excess of electricity in the grid, because of Green-energy initiatives. This means that they will literally pay people to use electricity, since a build up would damage the grid. Run a mining farm on those days and get paid to mine crypto.

  • Times are changing due to power moratoriums in the US and Canada that, as of end of 2017 – 2018 (Q2), have made regional associations with cheap power irrelevant. Now it’s about who has access to hydroelectric power AND is in a remote location. Being close to a city with residents and businesses competing for power is a problem.

    Bay Online Media (www.bayonlinemedia.com) has access to a LOT of hydroelectric power in a remote location in the US. We’re able to offer miners very affordable hosting (S9’s for $109/month) because of hydroelectric. The market is putting upward pressure on prices, but our philosophy is we want our customers to have the lowest hosting costs so they can weather tough economic times and be in a financial position to buy more miners and expand their operations. That’s why we offer 0% financing over 12 months on new equipment.

    It’s all about access to clean power.

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