15 best US states for cryptocurrency mining

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Cryptocurrency (or “crypto”) refers to digital currencies that can be used to purchase ordinary goods and services. But instead of relying on paper money or banks to complete transactions, cryptocurrencies use a decentralized online ledger to verify transactions.

Cryptocurrencies can be bought on stock exchanges using traditional currencies. But many can also be earned through a process called “mining,” which requires specialized software to solve complex mathematical problems.

Successful cryptocurrency mining depends on good computing power and is extremely energy consuming. For example, one bitcoin transaction is estimated to consume nearly 2,000 kWh of electricity – enough to power the average U.S. household for more than two months.

The cryptocurrency market flourished during the COVID-19 pandemic. For example, bitcoin could be purchased for less than $ 6,000 in the early days of the pandemic and rose to more than $ 63,000 in April 2021, an almost 10-fold increase in price.

As interest in cryptocurrency trading increases, so does interest in mining. While bitcoin mining has become extremely difficult, mining other crypto coins is much easier. Because crypto mining is so energy intensive, living in an area with low electricity prices makes mining more profitable.

Residents of countries without state income taxes or with low state tax burdens will pay less taxes on profits generated by the sale or exchange of currencies treated as fixed assets.

To find the best countries for cryptocurrency mining, researchers at Commodity.com analyzed data from the U.S. Census Bureau, the U.S. Energy Information Administration, the Office of Economic Analysis and HighSpeedInternet.com and created a composite estimate based on the following factors:

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

Here are the best countries for cryptocurrency mining.

15. Wyoming

Wyoming
Author f11photo / Shutterstock.com

Compiled result: 59.75

State tax burden: 0.0%

Electricity prices (cents per kWh): 11.2

Cost of living (compared to average): -7.2%

Percentage of households with broadband internet: 66.7%

Average internet speed (Mbps): 60.0

14. Utah

Bryce Canyon National Park in Utah
silky / Shutterstock.com

Compiled result: 61.25

State tax burden: 2.2%

Electricity prices (cents per kWh): 10.6

Cost of living (compared to average): -3.5%

Percentage of households with broadband internet: 75.6%

Average internet speed (Mbps): 93.0

13. Texas

Corpus Christi Texas
Sean Pavone / Shutterstock.com

Compiled result: 62.75

State tax burden: 0.0%

Electricity prices (cents per kWh): 12.0

Cost of living (compared to average): -3.5%

Percentage of households with broadband internet: 67.6%

Average internet speed (Mbps): 110.7

12. Arkansas

Little Rock, Arkansas
Henryk Sadura / Shutterstock.com

Compiled result: 63.25

State tax burden: 2.0%

Electricity prices (cents per kWh): 10.4

Cost of living (compared to average): -15.3%

Percentage of households with broadband internet: 55.6%

Average internet speed (Mbps): 64.9

11. Missouri

St.  Charles Missouri
Photos by Rob Neville / Shutterstock.com

Compiled result: 63.50

State tax burden: 1.9%

Electricity prices (cents per kWh): 10.9

Cost of living (compared to average): -11.3%

Percentage of households with broadband internet: 64.6%

Average internet speed (Mbps): 86.9

10. Florida

Kissimmee, Florida
Italo Paulino / Shutterstock.com

Compiled result: 64.00

State tax burden: 0.0%

Electricity prices (cents per kWh): 11.6

Cost of living (compared to average): +1.0%

Percentage of households with broadband internet: 72.7%

Average internet speed (Mbps): 102.0

9. Ohio

Columbus Ohio
f11photo / Shutterstock.com

Compiled result: 64.00

State tax burden: 1.3%

Electricity prices (cents per kWh): 12.1

Cost of living (compared to average): -11.6%

Percentage of households with broadband internet: 70.6%

Average internet speed (Mbps): 77.2

8. Mississippi

Bay St Louis Mississippi
Lewis Directed Films / Shutterstock.com

Compiled result: 64.75

State tax burden: 1.5%

Electricity prices (cents per kWh): 11.3

Cost of living (compared to average): -15.6%

Percentage of households with broadband internet: 49.6%

Average internet speed (Mbps): 74.3

7. South Dakota

Sharon Day / Shutterstock.com

Compiled result: 67.00

State tax burden: 0.0%

Electricity prices (cents per kWh): 11.8

Cost of living (compared to average): -12.2%

Percentage of households with broadband internet: 70.3%

Average internet speed (Mbps): 70.8

6. Nevada

The horizon of Las Vegas
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Compiled result: 67.25

State tax burden: 0.0%

Electricity prices (cents per kWh): 11.4

Cost of living (compared to average): -2.6%

Percentage of households with broadband internet: 72.2%

Average internet speed (Mbps): 104.1

5. Louisiana

Realest Nature / Shutterstock.com

Compiled result: 70.00

State tax burden: 1.7%

Electricity prices (cents per kWh): 9.5

Cost of living (compared to average): -12.1%

Percentage of households with broadband internet: 60.6%

Average internet speed (Mbps): 84.1

4. Washington

Washington
Written by vagabond54 / Shutterstock.com

Compiled result: 70.50

State tax burden: 0.0%

Electricity prices (cents per kWh): 9.7

Cost of living (compared to average): +8.4%

Percentage of households with broadband internet: 78.0%

Average internet speed (Mbps): 103.9

3. Oklahoma

Oklahoma City, Oklahoma
Austin Urton / Shutterstock.com

Compiled result: 70.75

State tax burden: 1.7%

Electricity prices (cents per kWh): 10.0

Cost of living (compared to average): -12.8%

Percentage of households with broadband internet: 59.4%

Average internet speed (Mbps): 87.9

2. Tennessee

Kevin Ruck / Shutterstock.com

Compiled result: 70.75

State tax burden: 0.0%

Electricity prices (cents per kWh): 10.8

Cost of living (compared to average): -10.3%

Percentage of households with broadband internet: 65.3%

Average internet speed (Mbps): 94.3

1. North Dakota

A hiker at Theodore Roosevelt National Park in North Dakota
ZakZeinert / Shutterstock.com

Compiled result: 72.00

State tax burden: 0.8%

Electricity prices (cents per kWh): 10.5

Cost of living (compared to average): -10.7%

Percentage of households with broadband internet: 71.6%

Average internet speed (Mbps): 74.5

Methodology

A man who analyzes data on a laptop
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The best countries for cryptocurrency mining are a mix of middle, south and west countries. Electricity prices in these countries tend to be lower, ranging from average prices of 9.5 to 12.1 cents per kWh, which is less than the national average of 13.2 cents per kWh.

The average U.S. household consumes 877 kWh of electricity per month, which means a typical monthly electricity bill is about $ 115. Households in countries with the highest composite cryptocurrency mining results pay up to 28% less than the national average.

Most of the best countries for cryptocurrency mining also have lower-than-average cost of living, which means that earnings from cryptocurrencies in these places go further.

These countries also tend to have lower personal income tax burdens (the proportion of total personal income paid by residents in relation to government personal income tax) due to the non-existent or low level of personal income tax. The average personal income tax burden for all households is 2% of income; all but the two countries that are best at cryptocurrency mining have lower government tax burdens.

To find the best countries for cryptocurrency mining, researchers at Commodity.com analyzed data from the U.S. Census Bureau, the U.S. Energy Information Administration, the Office of Economic Analysis and HighSpeedInternet.com and created a composite estimate based on the following factors:

  • State income tax burden (25 points)
  • Electricity prices (25 points)
  • Cost of living (25 points)
  • Percentage of households with broadband internet (12.5 points)
  • Average internet speed (12.5 points)

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