Why you should choose the United States for mining colocation

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There are many factors to consider when first setting up your cryptocurrency mining efforts, and location should be at the top of the list. You shouldn’t just consider whether to mine at home or through colocation (which is the right choice), but you should also put a lot of thought into which country you’d like to host your operation. There are a few popular choices, each with its own unique benefits and shortcomings, but none are better suited for successful long-term mining than the United States. Here are some of the main reasons you need to set up your mining colocation efforts in the U.S.

U.S. energy advantages

Of all the costs associated with cryptomining, the cost of energy is one of the most significant and can have a dramatic impact on your overall bottom line. It takes a great deal of power to run a successful mining operation, and many countries have tried to take advantage of this fact as mining has grown in popularity. America, however, has some of the least expensive energy rates in the world and still represents a prime opportunity for mining colocation.

Inexpensive power

According to recent data, the average cost of electricity in the U.S. is as low as 8 cents per kilowatt hour, compared to 20 cents in Japan and 35 cents in Germany. You’d have to work much harder to turn a profit mining crypto in those two countries than you would in America. While just a few cents per kilowatt hour might seem like a minor discrepancy, it adds up quickly over the course of a year and can amount to a major hit to your bottom line.

Capable and renewable energy

Many colocation facilities in the U.S. are strategically located near reliable, cost-efficient power sources and are designed to handle large-scale blockchain infrastructure. In addition to reduced energy costs and more power-capable facilities, America is also a world leader in renewable energy and boasts many different forms to keep you mining at a lesser cost.

Know where your equipment is

Many miners set up their equipment in a non-secure, practically public location and expect it to work out. In even worse cases, miners utilize equipment located in a distant place they have no knowledge of. Taking advantage of professional colocation services in the U.S. is a great way to ensure security and peace of mind so you can focus on what matters to you – making money.

Peace of mind

A reputable colocation partner in the U.S. will have facilities equipped with security measures to protect your equipment and keep your operation running. This peace of mind is truly invaluable in preventing distraction, frustration, theft, or damage so you can make the most of your time spent mining.

Lower shipping costs

Shipping large, heavy, highly technical items can quickly turn into an expensive task. Miners in America are able to enjoy lower costs to ship hardware and equipment within or to and from the U.S. compared to other countries. This luxury allows them to save money on shipments so they can earn more money through successful mining.

Easier to upgrade or trade equipment

Cryptomining equipment is highly specialized and expensive, especially if it’s far away and needs to be shipped internationally. America is a world leader in technology and is home to constant new developments in hardware and equipment, making it easier to access, purchase, and receive upgrades than it would be from another country. Additionally, Bitmain, the world’s largest manufacturer of miners with an estimated 70-80% market share, has repair facilities in California, Washington, and Georgia. This makes it extra convenient if your miners are already in a U.S. location (and extra inconvenient if they aren’t). Many countries lack the convenience to upgrade or purchase equipment so close to where you mine.

No extra taxes or fees

Many countries have heavily regulated the cryptomining industry, adding surplus fees and hidden taxes to every transaction. Mining in the U.S. allows you to avoid such unnecessary intrusions. This isn’t to say there are no taxes on cryptocurrency in America, but the laws are less damaging. Different types of transactions in the U.S. have different tax implications. Trading, for example, is treated differently than spending. For the sake of this subject, all that matters is that any currency earned through mining is considered ordinary income equal to the fair market value of the coin on the day it was mined. No hidden fees or extra taxes. This reduces headaches throughout the entire mining process and puts more money in your pocket at the end of the day.

The United States is the ideal country for mining colocation thanks to a number of key factors including a lower cost of energy, convenient shipping, and a wealth of professional colocation services. Compute North delivers industry-leading colocation solutions to help you make the most of your mining efforts. Contact us today to discover the right way to mine in America.

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