Belarus among cheapest Bitcoin mining countries

Belarus among cheapest Bitcoin mining countries

Photo: KryptoMoney

Bitcoin can still be profitable for mining if you get access to a fairly cheap electricity. It turns out that Belarus is among the top ten countries with the lowest cost of Bitcoin mining, according to the International Business Times.

Of the thousands of existing crypto currencies, bitcoin is still the leader in terms of popularity and value. Despite the fact that access to the production of crypto-currency has long been closed for "simple" miners because of the increased complexity of calculations, large investors still can make good money on bitcoin.

Mining is a process that requires a lot of electricity, and countries with cheap electricity are advantageous in this regard.

Belarus has been named among the top ten countries with the most advantageous "prime cost" of one bitcoin.

According to IBT, 1 BTC in Belarus will be worth $2177. In Russia, it's twice more expensive to mine one Bitcoin. In Ukraine, it's $300 cheaper.

The most advantageous is the construction of a bitcoin farm in Venezuela, where, because of extremely cheap electricity, the cost of bitcoin is only $531, about 20 times less than the current rate of the crypto currency.

In calculations, IBT used the average cost of electricity from official sources. Power consumption was calculated as an average of the need of the three most popular mining devices: AntMiner S7, AntMiner S9 and Avalon 6.

The Digital Economy Decree signed by the Belarus President in December 2017 allows individuals to mine, store, exchange, get, alienate, donate and bequeath tokens, including crypto-currencies. Mining activities in Belarus are not considered entrepreneurial activity. Mining also appeared in the list of activities that give the right to join the Belarusian High-Tech Park.

SEE: Full analysis of decree allowing cryptocurrencies and giving benefits for Hi-Tech Park companies

Until January 1, 2023 operations with crypto-currencies are subject to special privileges. During this time period there is no need to pay:

- VAT and income tax for HTP residents, for mining and operations for the creation, acquisition and disposal of tokens. Revenues and expenses from such activities are not taken into account in the taxable base;

- income tax from individuals on income from mining, acquisition and alienation of tokens. At the same time, the expenses of individuals who are registered as individual entrepreneurs are not taken into account when taxing income derived from the performance of entrepreneurial activities;

- tax in line with the simplified taxation system when it comes to proceeds from alienation of tokens by exchange for other tokens;

- tax on profits from the alienation of tokens through their exchange for other tokens. Revenues and outgoings with regard to such expenses are not taken into account for the purposes of calculating and paying income tax.