Cryptocurrency mining has become a lucrative industry across the globe, but it’s not equally lucrative in every country in the world. Some countries are friendlier toward crypto miners than others because of government policies and energy costs, which are important factors to consider when you want to earn money by mining cryptocurrencies in bulk. If you want to know about three pro-crypto mining states in the United States, this article will give you some insights into how these states became cryptocurrency mining havens and why you should consider setting up your cryptocurrency operation there.
Illinois
This state is a leading contributor to Bitcoin mining, with 90 percent of its cloud hashing services coming from within Illinois. Two major factors are contributing to Illinois’ popularity when it comes to crypto mining: cheap power and cold weather. Thanks to Illinois’ green initiatives, electricity prices have remained relatively low and remain an appealing factor for many new cryptocurrency miners. As far as being cold goes, it helps keep servers cool which’d make the whole server cooling costs low.
Washington
The Evergreen State may have been a late adopter of cryptocurrency, but it’s leading when it comes to mining. For example, while Washington has seen less investment than other states, like New York and Illinois, it ranks first in actual coin production. The reasons for Washington’s preeminence are rooted in an abundance of green hydroelectricity and its cool temperatures—both of which are useful for keeping servers running 24/7.
Wyoming
Miner-friendly laws and tax policies, lots of room for crypto miners to grow and access cheap electricity. Wyoming is known as a very crypto-friendly state since legislators passed two laws that are conducive to cryptocurrencies: HB 70, exempting cryptocurrency from property taxes, and SB 111 which legally recognizes cryptocurrencies as property. In addition, there have been efforts to pass additional crypto-friendly legislation such as House Bill 19, which was proposed to be a single-payer healthcare system but later turned into legislation creating Wyoming Blockchain Coalition.
Colorado
Although a smaller state than California and New York, Colorado is on track to be one of America’s biggest crypto mining hubs. Not only is it home to some of tech’s biggest names—Amazon and Apple are both situated there—but thanks to its low energy prices, it has a distinct advantage over other U.S. states. And for all its potential, cryptocurrency mining hasn’t taken off in Colorado yet, but it is legal to mine crypto there.
How to do crypto mining?
Cryptocurrency mining is an electronic process by which new transactions are added to a digital ledger called a blockchain. In simpler terms, a person or organization would use their computer hardware (processor and memory) to solve complex mathematical problems for which they’re rewarded with bits of cryptocurrency. Think about it like collecting gold coins without ever leaving your house! Well, if you happen to live in one of these states that would be fantastic!
Tax Incentives for miners
In recent years, several states have begun offering tax incentives for businesses that produce cryptocurrency. Although cryptocurrency is still a relatively new phenomenon, many states are interested in competing to be on top of future technology—and there’s money to be made! Here are three states doing their part to promote crypto mining. The Colorado Mining Association offers a special sales tax exemption for crypto miners. The organization promotes blockchain education and runs conferences focused on helping miners learn about cryptocurrencies and other related technologies. The CMA also offers support services such as networking opportunities and discounts at events across Colorado. Additionally, it has developed a proposal that would provide state-level insurance coverage for data breaches incurred by cryptocurrency miners. A recently passed bill will allow New York City residents to pay their taxes with Bitcoin. This move has been largely seen as an effort to attract more tech companies into New York City. It comes after a year of growth in which several major financial institutions have moved into NYC, including Fidelity Investments and Goldman Sachs Group Inc., among others. Chicago is another city promoting itself as a hub for crypto miners through its special tax incentive program.
Is Crypto Mining legal?
Many governments and central banks across the world remain somewhat skeptical about cryptocurrencies. Some have outright banned it, while others are concerned about its impact on their ability to collect taxes and regulate monetary policy. However, some countries have embraced digital assets with open arms. The easiest way to identify these crypto-friendly nations is to consider which states attract crypto miners more than others. That’s why we’ve taken a look at three of our favourite states where crypto mining is legal and profitable.
Bitcoin Future
Cryptocurrency has grabbed a lot of media attention, but it is still not widely understood by those who may want to jump into mining. While mining for cryptocurrency can seem like a daunting venture, some methods are more profitable than others. The major determining factor when it comes to success as a crypto miner is energy costs and environmental factors. If you’re looking to get started with cryptocurrency and Bitcoin mining, here are five places to consider: California; Washington State; Wyoming, Colorado, and New York.
Conclusion
Each state has its advantages and disadvantages. Overall, it’s up to you to decide which option works best for your needs. For example, do you want a short commute? Are taxes and weather important factors? Do you value an urban or rural environment? Depending on what you choose, your day-to-day experience could be completely different. With all these considerations in mind, read our review above and make your decision accordingly!
