Oman Launches USD 350 Million Crypto Mining Center. Jakarta The Ministry of Transport, Communications, and Information Technology (MTCIT) of Oman inaugurated a data hosting and crypto mining center in the Salalah Free Zone.
Costing around USD 350 million, this strategic move marks Oman’s entry into the global cryptocurrency and data hosting arena, while contributing to its economic growth.
Oman has taken the bold step of launching its second cryptocurrency mining centre, following the announcement of another facility in November 2022 worth nearly USD 390 million. This combined investment of USD 740 million poised to boost the country’s digital economy, create ample job opportunities for Omanis, and establish the country as a leading global center for hosting and data mining activities.
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Exahertz International, the company behind the facility, envisions a wider network of blockchain-based centers across the Sultanate of Oman. CEO Sam Fedows indicated expansion plans, starting with a pilot project in the Salalah Free Zone.
Launching Optimisus, Tuesday (22/8/2023), this new facility is already operational, has more than 2,000 machines, and is planned to be strengthened with 15,000 additional devices in October. The scope of the project can be extended to other areas such as Al Jabal Al Akhdar and Al Dakhiliyah Governorate.
Fedows stressed that the crypto mining center leverages local resources, including electricity and human resources, to support the Omani economy. The facility has adopted machines manufactured by well-known Chinese crypto mining company Bitmain Technologies.
This integration of technology and local resources is poised to drive Oman’s economic development and growth, in line with Fedows’ belief in blockchain technology as the future.
Kyrgyzstan, a Central Asian country, is also making headway in the crypto mining sector by investing USD 20 million in building a similar facility. Located near the Kambar-Ata-2 Hydroelectric Power Station, the center harnesses the excess energy generated by the power plant during certain periods of the year.
Kyrgyzstan President Sadyr Japarov underlined the intention to maximize energy utilization, prevent waste and provide benefits to the national energy system.
Italy is the most expensive country to mine bitcoin(BTC), while Lebanon is the cheapest. This is related to the cost of electricity to mine the bitcoin.
According to CoinGecko research, Italy is the most expensive country for crypto miners because electricity costs nearly USD 210,000 or IDR 3.06 billion (assuming an exchange rate of IDR 15,327 per US dollar) to produce one BTC. Other European countries namely Austria, Belgium, Denmark and Germany followed as the least profitable region.
It is interesting to note that bitcoin mining is profitable in only 62 of the 147 countries analyzed by CoinGecko. Despite the economic problems, Lebanon is the cheapest destination for such activities.
Mining bitcoins depends on several vital factors when deciding to join the ecosystem, the cost of electricity, the quality of the machines used and the difficulty of network mining.
Oman Launches USD 350 Million Crypto Mining Center. Via Cryptopotato.com written Tuesday (22/8/2023), datacryptoCoinGecko aggregator revealed that the average household electricity value to produce one bitcoin is USD 46,291 or 709 million rupiah. This is nearly double the current price of leading digital (approximately $26,000 or $398 million as of writing).
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However, there are regions where mining BTC is much more expensive. Italy is at the top of the list with electricity costing 208,560 USD or 437 million rupiah to produce one bitcoin. Several other European countries, such as Austria, Belgium, Germany, Netherlands, United Kingdom, and others follow from positions 2 to 9. Cayman Island is the only country from the top 10 that is not located in the Old Continent.
CoinGecko determined that the high cost of energy in Europe could be due to various reasons, including a surge in global wholesale electricity prices shortly after the COVID-19 pandemic and the crisis caused by the military conflict between Russia and Ukraine.
It is interesting to note that bitcoin mining is profitable in only 62 of the 147 countries analyzed by CoinGecko. Despite the economic problems, Lebanon is the cheapest destination for such activities.
Mining bitcoins depends on several vital factors when deciding to join the ecosystem, the cost of electricity, the quality of the machines used and the difficulty of network mining.
Via Cryptopotato.com written Tuesday (22/8/2023), datacryptoCoinGecko aggregator revealed that the average household electricity value to produce one bitcoin is USD 46,291 or 709 million rupiah. This is nearly double the current price of leading digital (approximately $26,000 or $398 million as of writing).
However, there are regions where mining BTC is much more expensive. Italy is at the top of the list with electricity costing 208,560 USD or 437 million rupiah to produce one bitcoin. Several other European countries, such as Austria, Belgium, Germany, Netherlands, United Kingdom, and others follow from positions 2 to 9. Cayman Island is the only country from the top 10 that is not located in the Old Continent.
CoinGecko determined that the high cost of energy in Europe could be due to various reasons, including a surge in global wholesale electricity prices shortly after the COVID-19 pandemic and the crisis caused by the military conflict between Russia and Ukraine.
Research estimates there are sizeable differences in electricity costs between continents. For example, the average household energy price to mine one BTC in Europe is estimated at USD 85,767 or IDR 1.3 billion, while in Asia, this figure is slightly higher than USD 20,000 or IDR 306 million.
Lebanon looks like the right choice for crypto miners as it only takes USD 266 or IDR 4 million to generate one bitcoin. Iran, Syria, Ethiopia and Sudan are the top 5 with the cheapest regions.
There are countries where electricity costs are also low, but local governments have imposed a ban on cryptocurrency operations. One of them is Iraq, which requires less than USD 4,000 or IDR 61 million to mine one BTC.
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Oman Launches USD 350 Million Crypto Mining Center. “The Central Bank of Iraq banned the use of cryptocurrencies in 2017. Otherwise, Iraq would have entered as the ninth cheapest country to mine bitcoins,” said CoinGecko.
Even though it is in the middle of the list, the country with the largest economy in the world, the United States has far more expensive electricity costs, namely USD 46,280 or Rp. 709 million compared to Canada which is USD 33,250 or Rp. 509 million and Mexico which is USD 26,340 or Rp. 403 million.
It’s worth mentioning that energy prices vary widely by state, making countries with cheaper rates become local crypto hubs. Leading bitcoin mining company Riot Platforms, for example, has focused its operations in Colorado and Texas, two areas of the United States that offer lower energy costs.
