Recently, the miners are actively trying to find a way to minimize the cost of production of digital gold. One such way is to move mynarski farms to countries where energy costs are minimal.
The fact is that for mining you need large energy consumption, produces a lot of heat. Many of the miners even began to compete in the contest of ideas of the non-trivial ways to use the released resource. For example, in Irkutsk, the miners proposed to heat the house or sauna.
Meanwhile, mining is a vital process in order for the blockchain remained decentralized and protected. First and foremost, this requires computing power and a large amount of electricity, the price of which in most countries is not small.
So, according to some analysts, the energy consumption of producing one bitcoin can vary in the corridor from $531 (Venezuela) to $26,170 (South Korea). According to estimates Digiconimist, by the end of 2018, the bitcoin miners will consume over 125 TWh, which is a huge amount of power.
Despite this, many crypto-entrepreneurs still consider mining as an option profit. But if in the past it did look like a successful company, but recently the miners of crypts has become much more difficult to maintain the profitability of its activities, given the current total stock bearish trend.
Where the grass is greener
The General trend is that crypto currency miners, whether small or large, are moving to areas where production costs are significantly less. In addition, the relocation of mining companies in the country, using alternative energy sources, reduces damage to the environment from such a large expenditure of resources.
Before China, because of the extremely low electricity costs, was a mining Mecca — a place which tried to get the biggest mining community. However, in the beginning of this year, China began to deal with cryptocurrency mining, which large farm, situated in China, began to leave in search of a better life.
Now miners seeking to the North in Sweden, Iceland and Norway. Prices on the consumption of KWh in these countries is 30% below the European average.
One of the largest farms, Bitfury recently announced its plans to open a company in Norway. The company plans to invest more than $35 million, and also intends to hire locals to run the facility. Norway not only has a stable and affordable price for electricity, but the government, which is not going to regulate crypto-space.
Canada — a new Paradise for miners?
Another Northern country, Canada, has established itself as attractive to the miners location. In some parts of Canada, electricity costs can be as low as 5-6 cents per kWh. The reason for such a low cost of electricity due to the fact that Canada uses a cheap and relatively uninterrupted working of hydroelectric power.
North American mining giant, Hyperblock, recently announced the acquisition of CryptoGlobal, based in Canada. In the end Hyperblock will have a huge enterprise working for 4-5 cents KWh. the Seemingly small difference of a few cents between electricity prices in the Nordic countries and Canada eventually pours into the millions.
Nevertheless, production in Canada has also a reverse side of the coin, attempts to regulate the crypto-space by the canadian government. When choosing between the North American and Scandinavian Meck miners literally have to choose between two evils, carefully counting the costs.
In General, the miners are demonstrating the absolute and unprincipled willingness to move through the world in search of the greatest possible benefit. Political system, weather conditions and climate also influence the choice of the location. The most important thing is profitability.