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Following my latest article regarding the new Cheap and Green Crypto Mining Index (CGCMI), I have decided to take a closer look at the top 5 countries from the 124 country ranking. Just to re-iterate, I am of the opinion that the only way of making crypto useful for humanity in the future is to get it right, so to mine using clean energy, and for miners to make a profit by keeping electricity cheap. The cheaper the USD/kWh, the more people can mine using small rigs and small pools to keep the network decentralized and secure.
So now that that is out of the way, here is the top 5 from the Index. For the full table, please follow this link.
1. Ethiopia [0.008 USD/kWh; 93.6% from Renewables; Cheap and Green Crypto Mining Index Score: 1]
Currently experiencing a civil war, this ancient East African nation is known for Halie Selassie, early humanoid remains, the first coffee plantations, as well as some more recent episodes or turmoil and famine :( .
Nevertheless, it has the two main ingredients for green and profitable crypto mining: cheap electricity from renewable energy. And with the future addition of the Grand Ethiopian Renaissance Dam to the grid, which is filling up as I write, Ethiopia might just become heaven for miners.
Ethiopia is also known for being hot, but just a glance at google maps reveals that it also has places of high altitude (over 2000m) which would be cool enough to run a rig. Also, its current government appears to be extremely crypto friendly, which might be appealing to miners.
However, only 0.98% of its population appears to be active on crypto, so perhaps locals might wonder what the hell you are up to with all those machines in some shed in the mountains!
2. Zambia [0.029 USD/kWh; 95.0% from Renewables; CGCMI: 0.977]
Unlike Ethiopia, Zambia has had democratically elected leaders over the last few decades, making it a much more stable place for a mining rig. However, it is not exactly a progressive country with homosexuality being basically illegal, and its tropical temperatures probably makes cooling a powerful rig a bit more expensive.
A lot of its population is disconnected from the grid and there is ample hydroelectric and thermal energy to sustainably power any mining rig. Zambia’s electricity is perhaps x3 more expensive than that of Ehtiopia but is still cheap (x100 cheaper than Germany) and almost all of it comes from renewables. Zambia has also seen more crypto adoption by its population than Ethiopia, sitting currently at 1.48%, although their government have not been in the news for crypto adoption policies.
3. Paraguay [0.058 USD/kWh; 100% from Renewables; CGCMI: 0.961]
Sandwiched between Brazil and Argentina, this landlocked country gets all of its electricity from theItaipu dam and produces so much renewable energy that it sells 90% of it. Even though the cost of power is about twice that of Zambia, it is still cheap and all the crypto mined there has a null Carbon Footprint, as 100% of it comes from hydroelectric
A renowned for being a 'smuggling' and ex-Nazi paradise, Paraguay always flies below the radar in the geopolitical world, and even though it is not rich it is a very stable country with democratically elected leaders who are extremely crypto friendly, having recently openly discussed the legal tender of Bitcoin, following El Salvador’s example.
This makes for me Paraguay the best out of the five countries here.
4. Kyrgyzstan [0.010 USD/kWh; 86.7% from Renewables; CGCMI: 0.960]
This ex-Soviet country in Central Asia is principally here because of its cheap electricity which is 300% cheaper than that of Germany, while remaining relatively green. Being a land-locked country of temperate continental climate, it means it experiences freezing cold winters and very hot summers, making temperature regulation a big aspect of crypto mining here.
Not sure about its political stability either, with ethnic conflict being a risk and economic turmoil coming with it. It is pretty corrupt too, but if you can find some good contacts perhaps this could be an ideal place to mine.
This country is not known for sustainability because most of its energy supply actually comes from fossil fuels, its just that the electricity production, which is what a mining rig would use, is mostly renewable.
5. DR Congo [0.061 USD/kWh; 100% from Renewables; CGCMI: 0.956]
This Central African nation is one of the biggest in Africa and despite violence, rampant corruption and extreme poverty, it manages to keep all of its electricity production from renewable sources, which is great for conscious crypto mining.
However, being tropical and extremely violent and corrupt, finding some stability to happily mine here is probably impossible unless you have some contacts. Also, the electricity is cheap but comparable to that of Paraguay, which offers a much safer and cooler environment for a rig.
DRC adoption to crypto remains at a modest 1.11%
Conclusion
Clearly cheap, sustainable electricity appears to be correlated to very unstable countries in this top 5. However, the full list of countries that I calculated this Index for, reveals countries like Norway, Iceland and Costa Rica appearing very high up the list. These are some of the safest (and coldest) and most stable places to have a mining operation in (albeit at the expense of being uber expensive)
The reality however, is that there are a million other variables to consider when setting a rig. Electricity costs, stability, availability of parts, weather and many other factors vary locally within each country. Mining in NY, LA, Chicago and Florida are pretty different experiences I'm sure, and access to free, green electricity can happen anywhere around the world as long as you have access to your own solar panel.
If you have any thoughts on the TOP 5 or on mining, looking forward to reading your comments below!
