The 15 best US states for mining cryptocurrencies

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    Bitcoin
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    Cryptocurrency (or “crypto”) refers to digital currencies that can be used to purchase regular 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 through exchanges with traditional currencies. But many can also be earned through a process called “mining,” which requires specialized software to solve complex math problems.

    Successful crypto mining depends on good computing power and is extremely energy-intensive. For example, a single Bitcoin transaction is estimated to use nearly 2,000 kWh of electricity – enough to power an average U.S. household for over two months.

    The crypto market is booming during the COVID-19 pandemic. Bitcoin, for example, could be bought for less than $ 6,000 in the early days of the pandemic and rose to over $ 63,000 in April 2021, a nearly 10-fold increase in price.

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

    Residents of states with no state income taxes or low state income tax charges pay less tax on profits from the sale or exchange of currencies that are treated as capital assets.

    To find the best states to mine cryptocurrencies, Commodity.com researchers analyzed data from the US Census Bureau, US Energy Information Administration, Bureau of Economic Analysis, and HighSpeedInternet.com and created a composite score based on the following factors :

    • State income tax burden
    • Electricity tariffs
    • Cost of living
    • Share of households with broadband internet
    • Average internet speed

    Here are the best states for cryptocurrency mining.

    15. Wyoming

    Wyoming
    Retrieved from f11photo / Shutterstock.com

    Compound score: 59.75

    State income tax burden: 0.0%

    Electricity prices (cents per kWh): 11.2

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

    Share of households with broadband internet: 66.7%

    Average Internet Speed ​​(Mbps): 60.0

    14. Utah

    Bryce Canyon National Park in Utah
    silky / Shutterstock.com

    Compound score: 61.25

    State income tax burden: 2.2%

    Electricity prices (cents per kWh): 10.6

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

    Share of households with broadband internet: 75.6%

    Average Internet Speed ​​(Mbps): 93.0

    13. Texas

    Corpus Christi Texas
    Sean Pavone / Shutterstock.com

    Compound score: 62.75

    State income tax burden: 0.0%

    Electricity prices (cents per kWh): 12.0

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

    Share of households with broadband internet: 67.6%

    Average Internet Speed ​​(Mbps): 110.7

    12. Arkansas

    Little Rock, Arkansas
    Henryk Sadura / Shutterstock.com

    Compound score: 63.25

    State income tax burden: 2.0%

    Electricity prices (cents per kWh): 10.4

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

    Share of households with broadband internet: 55.6%

    Average Internet Speed ​​(Mbps): 64.9

    11. Missouri

    St. Charles Missouri
    Rob Neville Photos / Shutterstock.com

    Compound score: 63.50

    State income tax burden: 1.9%

    Electricity prices (cents per kWh): 10.9

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

    Share of households with broadband internet: 64.6%

    Average Internet Speed ​​(Mbps): 86.9

    10. Florida

    Kissimmee, Florida
    Italo Paulino / Shutterstock.com

    Compound score: 64.00

    State income tax burden: 0.0%

    Electricity prices (cents per kWh): 11.6

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

    Share of households with broadband internet: 72.7%

    Average Internet Speed ​​(Mbps): 102.0

    9. Ohio

    Columbus, Ohio
    f11photo / Shutterstock.com

    Compound score: 64.00

    State income tax burden: 1.3%

    Electricity prices (cents per kWh): 12.1

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

    Share of households with broadband internet: 70.6%

    Average Internet Speed ​​(Mbps): 77.2

    8. Mississippi

    Bay St. Louis Mississippi
    Lewis Directing Films / Shutterstock.com

    Compound score: 64.75

    State income tax burden: 1.5%

    Electricity prices (cents per kWh): 11.3

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

    Share of households with broadband internet: 49.6%

    Average Internet Speed ​​(Mbps): 74.3

    7. South Dakota

    Sharon Day / Shutterstock.com

    Compound score: 67.00

    State income tax burden: 0.0%

    Electricity prices (cents per kWh): 11.8

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

    Share of households with broadband internet: 70.3%

    Average Internet Speed ​​(Mbps): 70.8

    6. Nevada

    Las Vegas skyline
    littlenySTOCK / Shutterstock.com

    Compound score: 67.25

    State income tax burden: 0.0%

    Electricity prices (cents per kWh): 11.4

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

    Share of households with broadband internet: 72.2%

    Average Internet Speed ​​(Mbps): 104.1

    5. Louisiana

    Real Nature / Shutterstock.com

    Compound score: 70.00

    State income tax burden: 1.7%

    Electricity prices (cents per kWh): 9.5

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

    Share of households with broadband internet: 60.6%

    Average Internet Speed ​​(Mbps): 84.1

    4. Washington

    Washington
    Retrieved from vagabond54 / Shutterstock.com

    Compound score: 70.50

    State income tax burden: 0.0%

    Electricity prices (cents per kWh): 9.7

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

    Share of households with broadband internet: 78.0%

    Average Internet Speed ​​(Mbps): 103.9

    3. Oklahoma

    Oklahoma City, Oklahoma
    Austin Urton / Shutterstock.com

    Compound score: 70.75

    State income tax burden: 1.7%

    Electricity prices (cents per kWh): 10.0

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

    Share of households with broadband internet: 59.4%

    Average Internet Speed ​​(Mbps): 87.9

    2. Tennessee

    Kevin Ruck / Shutterstock.com

    Compound score: 70.75

    State income tax burden: 0.0%

    Electricity prices (cents per kWh): 10.8

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

    Share of households with broadband internet: 65.3%

    Average Internet Speed ​​(Mbps): 94.3

    1. North Dakota

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

    Compound score: 72.00

    State income tax burden: 0.8%

    Electricity prices (cents per kWh): 10.5

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

    Share of households with broadband internet: 71.6%

    Average Internet Speed ​​(Mbps): 74.5

    methodology

    Man analyzes data on a laptop
    fizkes / Shutterstock.com

    The best states to mine crypto are a mix of Midwest, South, and West states. Electricity prices in these countries tend to be lower and range from average prices of 9.5 to 12.1 cents per kWh, all of which are below 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 around $ 115. Households in the states with the highest composite scores for crypto mining pay up to 28% less than the national average.

    Most of the best states to mine crypto also have below average cost of living, which means that cryptocurrency revenues in these places continue to grow.

    These states also tend to have lower state income tax charges (the proportion of total personal income that residents pay to state income taxes) due to nonexistent or low state income tax rates. The average state income tax burden for all households is 2% of income; All but two of the best states to mine cryptocurrencies have lower state income tax rates.

    To find the best states to mine cryptocurrencies, Commodity.com researchers analyzed data from the US Census Bureau, US Energy Information Administration, Bureau of Economic Analysis, and HighSpeedInternet.com and created a composite score based on the following factors :

    • State income tax burden (25 points)
    • Electricity tariffs (25 points)
    • Cost of Living (25 points)
    • Share of households with broadband internet (12.5 points)
    • Average internet speed (12.5 points)

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