Uzbekistan invites miners: it’s time to change location?

On November 2018 Bitcoin price’s monthly decreasing became the lowest during the last 7 years. The price of the first cryptocurrency decreased from $6 494 to $3 758. In the end of November the price correlated to 4 000 dollars but the volatility is still very high.

The experts predict various scenarios of further events. E.g. Tim Draper believes in price increasing till $250 000 while the venture investor Jim Brayer is convinced that the cryptocurrency market is on the threshold of ‘nuclear winter’.

 Meanwhile in most countries Bitcoin mining becomes unprofitable. The net value of the first cryptocurrency differs depending on tariffs for electricity, equipment cost and other factors.

The experts of Ice Advice marketing agency tell where mining is still profitable and why Uzbekistan became among the most attractive jurisdictions for miners.

Where Bitcoin mining has become unprofitable?

In 2018 Elite Features published the research indicating the net value of Bitcoin in different countries.

The mining leaders are Canada, China and Iceland. The Bitcoin net value in Canada is 3 965 dollars, in China - $ 3 172 and in Iceland the net value of mining is 4 746 dollars.

Nowadays Bitcoin price is 3 434 dollars per coin (according to Coinmarketcap) therefore in Canada and in Iceland mining has already became unprofitable and in case of further price decreasing China will be also included into the list.

Thus there appears a question – what should miners do in the nearest future?

Why Uzbekistan is the most attractive?

According to the Elite Features research we may see that the net Bitcoin mining value is lower than $2 000 per coin just in six countries. They are Myanmar, Kuwait, Trinidad and Tobago, Ukraine, Uzbekistan and Venezuela.

Venezuela, Kuwait and Ukraine are not attractive for mining due to unstable political situation and uncertain position of the governments toward crypto industry. Myanmar has problems with the US financial authority therefore sanctions may be possibly introduced.

Trinidad and Tobago is excluded due to inconvenient geographical location therefore difficulties for equipment delivering appear.

Uzbekistan is regarded nowadays as the most attractive direction for miners with the net Bitcoin mining value of $ 1 768.

Advantages and disadvantages of the jurisdiction

The government selected the way towards blockchain technologies implementation and crypto industry adoption. On July 3 there was adopted the law legalizing mining industry and cryptocurrencies using in Uzbekistan.

Moreover profits from mining and cryptocurrencies assets operations are not subjects of tax. Thus miners get special conditions for their activity providing.

The Uzbek government plans attracting large amount of miners and cryptocurrency investors in the next few years.

Possible problems with electricity providing is regarded among disadvantages of the jurisdiction but at the same time the government commenced constructing new nuclear power station that is expected to solve all existing and even possible problems. Moreover miners may use the renewable sources of electrical energy that are becoming extremely demanded in the recent years.

By Ice Advice agency specialist.

Leave a Reply

You must be logged in to post a comment.