If you're in the United States and plan to mine cryptocurrencies, here are the best places to try.

Since the discovery of Bitcoin back in 2009, cryptocurrency has become increasingly popular among traders. During the recent COVID-19 pandemic, the crypto market has experienced a massive boom, pushing Bitcoin price to hit an all-time high at $63,000 in April 2021.

Bitcoin Mining In US

At the center foundation of Bitcoin and other cryptocurrencies is the practice of mining. Cryptocurrency mining is the mechanism that requires miners to solve complex mathematical problems to secure the network and in return, the miners will be rewarded with crypto coins. Mining confirms each transaction and adds it to the blockchain. It is the key to the decentralized nature of cryptocurrency.

However, crypto mining is not equally optimized in all areas. Since mining is not exactly a cheap practice and involves high-tech computers to solve the problems, it's important to make it as efficient as possible. But that goal can only be achieved if you're doing it in a place that supports crypto mining and provides all the necessary tools. After all, we must acknowledge that the technology, regulatory environment, and resources can vary from time to time, country to country.

The US is often seen to be one of the best countries to mine cryptocurrency. The country offers many advantages such as relatively affordable electricity, less regulation, and supports high technology. But even within the United States itself, there are areas that are more suitable for crypto mining compared to others. To help you decide where to jumpstart your mining journey, we're going to unfold the best States to mine cryptocurrency.

 

Key Factors to Mine Cryptocurrency

There are several key factors that you need to consider before mining cryptocurrencies. Here are some of the most common ones:

 

Advanced Mining Devices

If gold miners need to own hard rock equipment to dig the precious metal out of the ground, Bitcoin miners must assemble their own mining machines that consist of specialized software and powerful mining rigs. These types of equipment are not cheap, so crypto miners need to prepare a high budget in advance. However, this still doesn't seem to stop people from participating in crypto mining, considering that the rewards can be incredibly high too.

 

Speedy Internet Connection

In addition to expensive devices, miners also need to use a fast and reliable internet connection to perform mining operations. In fact, only the first miner that gets to solve the problem will be recorded and rewarded, so miners need to be able to verify the transaction as quickly as possible. It's worth mentioning that using high-speed internet also comes with fees, which vary depending on the area that you're in.

 

Cheap Electricity Cost

Crypto mining operations consume a lot of power, which is why some countries don't allow such activities within their borders. For instance, one Bitcoin transaction is estimated to consume around 2,000 kWh of electricity, which is just enough to power an average household for two months. So if you're planning to do crypto mining, it's best to a country with a cheaper electricity rate.

 

The Country's Economic Condition

The economic condition is also essential as it can determine how cheap or expensive the crypto mining operation will be. Besides, you need to calculate not only your equipment costs but also your living costs as well. You'll need a place to set up the mining devices and perhaps hire high-skilled individuals to maintain and operate the machines.

 

The Government's Stance on Crypto Mining

The fact that crypto mining requires expensive resources and consumes a lot of power makes it bad for the environment and can affect a country's power consumption rate. This is why some governments remain skeptical and unsupportive of digital currencies. If you're planning to mine cryptocurrency, it's best to pick a country that sees cryptocurrency in a positive light.

 

Suitable Climate Condition

Bitcoin mining devices operate almost non-stop, so it would be better to use them in a place with cooler weather to keep the temperature under control. Mining in a cooler climate area prevents the machines from overheating and thus, minimizes the cost of electricity consumed by cooling systems.

 

Ideal US States to Mine Cryptocurrency

Some researchers from Commodity.com have analyzed the data from the US Census Bureau, the US Energy Information Administration, the Bureau of Economic Analysis, and HighSpeedInternet.com, which resulted in a composite score based on the following factors:

  • State income tax burden
  • Average internet speed
  • Electricity rates
  • Cost of living
  • Percentage of households with broadband internet

North Dakota, Tennessee, and Oklahoma top the list of the best States to mine cryptocurrency because they tend to have low consumption and electricity rates compared to other States. Electricity rates in Midwestern, Southern, and Western States are known to be relatively cheaper, with the average rates ranging from 9.5 to 12.1 cents per kWh, while the national average rate is 13.2 cents per kWh. Some States like Washington have been quick to realize the advantage of being a crypto-friendly area and began capitalizing on it by raising the electricity rates for Bitcoin miners in early 2017.

Most of the States listed also have costs of living that are lower than average, so miners can save more money and generate more profit from their activities. These States also typically have lower state income tax burdens due to low to nonexistent income tax rates. The average state income tax burden across all households is around 2% of income, but some of the States mentioned have rates way lower than that.

Here are the details of the top 10 US States to mine cryptocurrency:

 

1. North Dakota

  • Composite score: 72.00
  • State income tax burden: 0.8%
  • Average internet speed (Mbps): 74.5
  • Electricity rates (cents per kWh): 10.5
  • Cost of living (compared with average): -10.7%
  • Percentage of households with broadband internet: 71.6%

North Dakota

 

2. Tennessee

  • Composite score: 70.75
  • State income tax burden: 0.0%
  • Average internet speed (Mbps): 94.5
  • Electricity rates (cents per kWh): 10.8
  • Cost of living (compared with average): -10.3%
  • Percentage of households with broadband internet: 65.3%

Tennessee

 

3. Oklahoma

  • Composite score: 70.75
  • State income tax burden: 1.7%
  • Average internet speed (Mbps): 87.9
  • Electricity rates (cents per kWh): 10.0
  • Cost of living (compared with average): -12.8%
  • Percentage of households with broadband internet: 59.4%

Oklahoma

 

4. Washington

  • Composite score: 70.50
  • State income tax burden: 0.0%
  • Average internet speed (Mbps): 103.9
  • Electricity rates (cents per kWh): 9.7
  • Cost of living (compared with average): +8.4%
  • Percentage of households with broadband internet: 78.0%

Washington

 

5. Louisiana

  • Composite score: 70.00
  • State income tax burden: 1.7%
  • Average internet speed (Mbps): 84.1
  • Electricity rates (cents per kWh): 9.5
  • Cost of living (compared with average): -12.1%
  • Percentage of households with broadband internet: 60.6%

Louisiana

 

6. Nevada

  • Composite score: 67.75
  • State income tax burden: 0.0%
  • Average internet speed (Mbps): 104.1
  • Electricity rates (cents per kWh): 11.4
  • Cost of living (compared with average): -2.6%
  • Percentage of households with broadband internet: 72.2%

Nevada

 

7. South Dakota

  • Composite score: 67.00
  • State income tax burden: 0.0%
  • Average internet speed (Mbps): 70.8
  • Electricity rates (cents per kWh): 11.8
  • Cost of living (compared with average): -12.2%
  • Percentage of households with broadband internet: 70.3%

South Dakota

 

8. Mississippi

  • Composite score: 64.75
  • State income tax burden: 1.5%
  • Average internet speed (Mbps): 74.3
  • Electricity rates (cents per kWh): 11.3
  • Cost of living (compared with average): -15.6%
  • Percentage of households with broadband internet: 49.6%

Mississippi

 

9. Ohio

  • Composite score: 64.00
  • State income tax burden: 1.3%
  • Average internet speed (Mbps): 77.2
  • Electricity rates (cents per kWh): 12.1
  • Cost of living (compared with average): -11.6%
  • Percentage of households with broadband internet: 70.6%

Ohio

 

10. Florida

  • Composite score: 64.00
  • State income tax burden: 0.0%
  • Average internet speed (Mbps): 102.0
  • Electricity rates (cents per kWh): 11.6
  • Cost of living (compared with average): +1.0%
  • Percentage of households with broadband internet: 72.7%

Florida

 

Final Words

We've learned that crypto mining is not as easy as it seems. There are many factors to consider if you're planning to get a dip at cryptocurrency mining, including picking the best place to do the operation. Every country or area has different conditions and resources, so it becomes necessary to pick where you're going to mine as it can affect your performance and minimize the cost.

In contrast to the States above, Hawaii, New York, California, and Connecticut are among the worst US States to mine cryptocurrency. Despite having speedy internet connections, these States are known to have high taxes, electricity rates, and total living costs compared to other areas.

Figuring out the balance between all the factors that we've listed earlier can be challenging, but just like reaching any goal, it takes much patience, hard work, and time. Lastly, you can decide for yourself whether crypto mining is really the best method for you to generate profit or not. After all, there are other ways to earn money from cryptocurrency.