• Kuwait is the cheapest country for crypto mining – also for Dogecoin
• Dogecoin mining is currently only profitable in twelve states
• USA and Germany unattractive as locations for Dogecoin mining
For the miners of Bitcoin, Ether, Dogecoin & Co., the choice of location is of enormous importance, since the energy costs decide whether the mining activities are profitable at all. If the costs for obtaining a token exceed the current crypto exchange rate, the respective miner records losses. If, on the other hand, the energy costs are very low, the profit margin is correspondingly significantly higher.
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Dogecoin: Low energy consumption, but also low sales value
This applies not only to Bitcoin and Ether miners, but also to Dogecoin creators. Litecoin-derived peer-to-peer cryptocurrency Dogecoin was released in 2013 and is currently the 10th largest cryptocurrency in the world. Puppy coins are characterized by even higher price fluctuations than most other cryptocurrencies. At the current price of $0.08208, the Dogecoin market cap is just under $10.8 billion, according to CoinMarketCap. The data is as of October 28, 2022. Mining a Dogecoin consumes very little energy, especially compared to the original cryptocurrency Bitcoin: Almost exactly one kilowatt hour of electricity is required to create a Dogecoin.
After China’s crypto ban: Miners are looking for alternatives
Since the Chinese Communist Party (CP) banned all crypto activities in June 2021, crypto miners have been looking for alternatives. China was previously known as a crypto paradise due to cheap energy prices and a relatively good infrastructure and had a very high proportion of mining activities. When choosing a new suitable location, two names kept coming up: Kazakhstan and Texas. But as a statistic from “911 Metallurgist” shows, there are still significantly cheaper alternatives for crypto miners.
And number one is…
As with mining Bitcoins and Ethercoins, Kuwait is the most favorable location for mining Dogecoins. With an estimated 101.5 billion barrels, the small emirate on the Arabian Peninsula has the fourth-largest oil reserves in the world, and energy costs there are correspondingly cheap. Mining a Dogecoin here only costs a marginal 0.01 US dollars. At the current price, the production costs are only one-fifth of the retail value – mining dogecoins in Kuwait is therefore an extremely lucrative business. Unsurprisingly, many miners have settled in Kuwait to take advantage of the low electricity prices. Kuwait has now become an established cryptocurrency hub, prompting the Central Bank of Kuwait to issue a statement on the industry in May 2021, calling for responsible business practices.
Dogecoin mining is also very worthwhile in these states
The countries in the other top positions have a similar profile to Kuwait: They are Asian and African countries with large deposits of oil and natural gas, such as Algeria (second place with 0.02 US dollars), Angola (third place with 0 .03 US dollars), Sudan (4th place with 0.04 US dollars) or Qatar (8th place with 0.04 US dollars). Kazakhstan, often referred to as a crypto Eldorado, is the 11th cheapest country for Dogecoin mining. Here, the generation of a meme token costs 0.05 US dollars and currently brings about 0.01 US dollars per new dogecoin, so it is a lucrative business with a correspondingly large number.
Dogecoin mining is hardly worth it here, if at all
At the current low price level, Dogecoin mining is only lucrative in comparatively few countries. From the thirteenth place on the list, the costs and income are balanced: The energy for creating a Dogecoin in Bhutan costs 0.06 US dollars, i.e. the same as the sales value. From rank 20 (Bahrain, cost: 0.07 US dollars), dogecoin miners are burning money with every newly generated dogecoin, at least during the current crypto winter. In other words, at current price levels, dogecoin mining is only a profitable business in twelve countries around the world. But this was different before. When Dogecoin reached a price of up to 0.75 US dollars for a few hours in the midst of the hype in May 2021, mining the meme token would have been a very profitable business in almost all countries. Only in one country in the world does the cost exceed the one-dollar mark, and that’s in crisis-ridden Venezuela, where generating a meme token costs a whopping $1.36.
Dogecoin mining in the USA and Germany is currently not a good idea
Even in Texas, which has become an attractive destination for crypto miners from all over the world, especially in recent months, mining Dogecoins is currently not breaking even. Here, a Dogecoin miner has to raise $0.10 – almost twice as much as selling the coin brings back. Incidentally, Dogecoin mining is currently not profitable in any of the 50 US states: Even in Louisiana, the state with the cheapest electricity, mining a Dogecoin costs 0.08 US dollars.
Unsurprisingly, Dogecoin generation is also not a good idea in Germany, since energy prices in Germany are relatively high compared to the rest of the world. At a price per kilowatt hour of just under 49 cents (as of October 2022) – roughly equivalent to the production costs of a newly created Dogecoin – a Dogecoin miner in Germany would make a whopping loss with each generated token.
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