In November 2018, Bitcoin demonstrated the most significant monthly fall over the past 7 years. The value of the leading cryptocurrency fell from $ 6494, reaching a minimum of $ 3758. At the end of the month, the course tried to entrenched above the psychological mark of $ 4 thousand, but the high volatility and the absence of a bull impulse reduced the recovery attempt, determining the further collapse.
Experts predict different scenarios for developing events. For example, Tim Draper continues to believe in an increase in value to unprecedented heights, namely, up to $ 250 thousand, while the venture investor Jim Breyer declares that the cryptocurrency market is on the threshold of the Nuclear Winter.
Meanwhile, in many countries, Minning Bitcoin becomes unprofitable. The cost of extraction of first cryptocurrency is different, and depends on electricity tariffs, the cost of buying equipment and a number of other factors.
The Blackball Marketing ICO Experts decided to figure out what countries the mining stopped making a profit and why Uzbekistan is the most attractive jurisdiction for «miners».
In 2018, the ELITE FEATURES study was published, which provides the cost of bitcoin production in different countries.
The leaders of the Mining industry today is Iceland, Canada and China. In Iceland, the cost of mining of one Bitcoin coin costs $ 4746, in Canada, this indicator is $ 3965, and in China — $ 3172.
At the time of writing the material
In such a situation, the question is brewing — where to move the Majneram to ensure that the activity remains profitable.
From the study of Elite Features it can be seen that only in six countries the cost of Bitcoin below $ 2 thousand:
Venezuela, Kuwait and Ukraine can be excluded from the list due to the unstable political situation and the uncertain attitude of the authorities to crypto industry. Myanmar has problems with the US financial regulator, and therefore sanctions are possible. Trinidad and Tobago are excluded due to geographic remoteness and complexity of equipment delivery.
Uzbekistan is currently the most promising jurisdiction for miners. The cost of extraction of first cryptocurrencies is there only $ 1768.
Advantages and disadvantages of jurisdiction
The country’s government chose a confident way to introducing blockchain technology and the legalization of crypto industry. On July 3, a law was signed, officially allowing mining and the use of cryptocurrency in Uzbekistan.
Moreover, the income obtained as a result of operations with cryptocurrency assets is not subject to income taxes, so miners receive preferential conditions for their activities.
In the coming years, Uzbekistan intends to attract a large number of investors working in Crypto Industry.
Of the disadvantages, only possible problems with the provision of electricity can be distinguished, but the project has already begun the implementation of the project for the construction of a nuclear power plant, and in addition, miners will be able to use renewable energy sources to which the industry has become massively moving in recent years.
The cost of kilowatta of electricity in Uzbekistan is only $ 0.04, and since June 2019 it is planned to increase tariffs up to $ 0.046. At the same time, in Iceland, 1 kW costs $ 0.06, in Canada — $ 0.0456, and in China — reaches as many as $ 0.13.
At the same time, in each state there are specialized benefits for miners. In the same China, the mining pools acquire electricity for 3 cents per kilowatt. Such conditions operate in Uzbekistan. We also note that in a number of regions of Russia, the cost of electricity without benefits is quite low to talk about the prospects for the mining industry. In the Irkutsk region, for example, 1 kW of electricity costs only 80 kopecks ($ 0.012).
About the attractiveness of Uzbekistan as jurisdiction for mining told the Blackball Marketing ICO Specialist Bednarsky Vitaly.