Where to mine cryptocurrencies? The best countries to do it in 2024

Cryptocurrency mining is an activity that consists of solving complex mathematical problems to validate transactions that are carried out on a decentralized network, such as Bitcoin. In exchange, miners receive a reward in the form of digital coins, which they can sell or hold as an investment.

However, cryptocurrency mining is not an easy or cheap task. It requires specialized equipment, which consumes a lot of electrical energy and must be kept at an adequate temperature to avoid overheating. In addition, mining is subject to the regulations and restrictions of each country, which can vary from total prohibition to total permissiveness.

Therefore, it is important to choose well the place where mining is going to be carried out, since the profitability and safety of the activity will depend on it. In this article, we show you the best countries to mine cryptocurrencies in 2024, according to various criteria such as the cost of electricity, climate, internet speed and legislation.

Kuwait

Kuwait is one of the most interesting countries to do business in the Middle East, thanks to its low costs of living, its oil revenues and its ease of doing business. Additionally, it has one of the lowest electricity rates in the world, making it an ideal destination for cryptocurrency mining.
According to a study by the University of Cambridge, mining one bitcoin in Kuwait could cost around $1,500, which is a large profit margin, considering that the current price of the cryptocurrency exceeds $50,000.

However, Kuwait has a drawback: cryptocurrency mining is not legal in the country, so miners must operate discreetly and sell their coins to traders in other countries. In addition, the climate is very hot, which requires investing in cooling systems for the equipment.

Venezuela

Venezuela is a country that is going through a serious economic, political and social crisis, which has caused hyperinflation, a shortage of basic goods and a massive migration of its population. However, it is also a pro-crypto country, where President Nicolás Maduro has promoted the use of digital currencies to circumvent sanctions imposed by the United States.
Venezuela has one of the lowest electricity rates in the world, due to the state subsidy that the sector receives. According to the same study from the University of Cambridge, mining one bitcoin in Venezuela could cost around $531, making it the cheapest country to mine cryptocurrencies.
In addition, Venezuela has legislation favorable to cryptocurrency mining, which recognizes the activity as legal and regulates it through mandatory registration and a tax rate. However, there are also risks, such as political instability, legal uncertainty, power outages and persecution by the authorities.

Iceland

Iceland is a Nordic country, known for its natural beauty, its quality of life and its technological development. It is also an ideal country for cryptocurrency mining, due to its cold climate, which makes it easier to cool equipment, and its cheap and clean electricity, which comes from renewable sources such as geothermal and hydroelectricity.
According to the University of Cambridge study, mining one bitcoin in Iceland could cost around $4,700, making it among the cheapest countries to mine cryptocurrencies.
Furthermore, Iceland has permissive legislation regarding cryptocurrency mining, which does not specifically prohibit or regulate it. However, it also has some limitations, such as a shortage of space and labor, and the difficulty in accessing the local market, since cryptocurrencies are not legal tender in the country.

China

China is the leading country in cryptocurrency mining, hosting more than 70% of the Bitcoin network's computing power. Among the reasons for its dominance are its low cost of electricity, which comes primarily from coal, its large population, and its technology industry, which produces most mining equipment.
According to the University of Cambridge study, mining one bitcoin in China could cost around $3,200, placing it among the most profitable countries to mine cryptocurrencies.
However, China also has its challenges, such as its hot climate, which requires cooling systems, and its restrictive legislation, which prohibits the trading and use of cryptocurrencies, and which could be tightened further in the future.
Cryptocurrency mining is an activity that can generate great profits, but also involves great costs and risks. Therefore, it is important to choose well the place where it is going to be carried out, taking into account factors such as cost of electricity, climate, internet speed and legislation.

In this article, we have looked at some of the best countries to mine cryptocurrencies in 2024, based on these criteria. However, there are many other countries that could also be viable options, depending on the preferences and needs of each miner.