Is Serbia a great place for Crypto-Mining?

Mining crypto-currencies can be considered tedious at times, especially with fluctuating prices around crypto-assets making them a difficult business when it comes predicting a solid annual income, some experts assume that in the long run only people who were in the early development stages of Bitcoin will continue to be the sole benefactors from this lucrative virtual currency.

The chart provided by Elite fixtures shows the cheapest places to mine Bitcoin in 2018.

That simply is not true. For newcomers to stay in the game and achieve positive earnings Is possible perhaps by simply moving your mining rig abroad to a place with lower maintenance costs can potentially solve all your conundrums related to long term profit. Ever since the 2017 Bitcoin price skyrocketed its growth has been observed by not only small-time mining congregates but by huge cloud mining companies as well, which offer their customers the option to purchase mining rigs and store them remotely.

It doesn’t matter where you gather your crypto-assets the mining rig always operate on the same principle.

By outsourcing your mining rigs to remote locations where power costs are lower including accommodation ensured by a stable climate with lower frequencies of natural disasters will put your mind to ease. Knowing that you’re likely less to worry about your mining rig and more on how you will handle your virtual assets is certinly achieveable. Multiple charts have been circulating around the web often praising countries like Korea, Venezuela and Ethiopia. But what about Serbia?

Why Serbia is a good place for crypto operations?

Serbia although not officially part of the EU does enjoy a good deal of privileges from the European Union and stands neutral from the point of legality towards crypto-currencies. By choosing Serbia to be your patron for mining crypto-currency, you stand to benefit significantly even in times when the price for Bitcoin and other alt-coins are fluctuating bellow it’s mining profitable price.

The three main quotas for a profitable mining operation include: Temperature, Low-cost electricity and fast broad-band internet. What is usually disregarded when calculating capital, are the warehouse costs, which marginally will be your main concern should you decide to outsource your mining rig.

Your profit revolves around these figures and finding what the best place may be could substantially increase your overall profit.

Warehouse and storing

When it comes to renting warehouses or offices Serbia really stands out in low cost – functional warehouses.

You can opt for a smaller warehouse with a disregardable renting price up to 100 euros per month depending on the location. The southern part of Serbia is generally considered the better option when it comes to renting, as real-estate prices in Serbia are considered the lowest in the entire region, leasing the very same size in other parts of Europe could quadruple the costs including some of the more Bit-Coin Friendly states of the western Europe and Eastern developed countries in Asia and parts of Russia.

Taken into consideration your best bet is to choose a place where rent is considerably cheaper as mining rigs operate on the same principle no matter where they are in the world.

Chainvest.it offers the best possible price when it comes to leasing your mining rig abroad.

The internet in Serbia

The internet in Serbia is well developed, with several distributors have been implementing optical cables steadily throughout the country during the past years offering the most endurable option and stable connectivity with high download and upload speeds reaching up to 170 Mb which persist throughout possible weather conditions and infrequent black-outs. Serbia uses Telecom and a broad number of SBB operators offering great annual agreements for all your internet needs.

Power consumption

This is where Serbia really stands out when it comes to low efficient power consumption. Electricity rates in Serbia and Kosovo are among Europe’s cheapest, with the price of mining one bitcoin in these regions is roughly estimated to be $3,133, placing them on a par with China. Where people often miscalculate their costs is the exact cost of a single KW/h.

The main supplier of electricity in Serbia is Elektroprivreda Srbije, possessing a capacity of 7.662 MW and generating 38.9 TWh of electricity each year.

Serbia has implemented the Law of Energy in 2004 allowing competitors to enter the electricity sector however the vast majority of the population is  largely depended on Elektroprivreda Srbija at regulated prices but are allowed to purchase electricity on the open market should they wish to. This process usually revolves donating a substation to allow larger amounts of power to be distributed to your operation if your consumption should exceed 25 GWh per year. For all other consumers the supply tariff works both for smaller companies and households alike.

Depending on your monthly consumption your Kw/h are distributed accordingly to three zones: red green and blue. By maintaining your power consumption bellow 1600kw per month your kw/h per hour amounts to 0.10 euro cent to 0.12 per kilowatt with all taxes and subsidies included.

The voltage in Serbia is 220-230 Volts with a frequency of 50Hz. The electric socket used is the European CEE7/7 “Schuko” wall outlet

So how Serbia fairs on its openness towards Cryptocurrency?

Bitcoin has not been officially recognized as an official payment method in Serbia, thus it cannot be regarded as money in a real sense. Hence, if it is not money, the economic logic dictates that it should be some kind of an asset. It is the lack of definition and inability to fit the Bitcoin characteristics into the existing regulations that give a headache to accountants and tax consultants worldwide.

As of now in 2019 Bitcoin has not been officially recognized as a viable payment method in Serbia, however, there has been a rather innocuous update for Bitocoin’s legality earlier this year 2018 on the Anti-Money Laundering and Financing of Terrorism Act 2018 which briefly mentions cryptocurrency. Affecting only parties which deal with towards cryptocurrency such as exchange offices or brokers, which are required to report all annual incomes to the tax division department. Basically, since crypto currencies are not defined or taken as an intangible or immaterial asset makes them perfectly fine to use within the confines of the state as long as you don’t use them to acquire companies, real-estate or participate in any sort of acquirement of tangible goods. Going to one of several exchange offices and trading your crypto assets is perfectly legal with negligible fees for gas.

What does this mean for miners?

For companies offering out-sourcing mining facilities from Serbia need to be registered within the Serbian Tax Administration but calculating corporate tax at the end of the year is rather difficult. Since market price for crypto is not defined making them completely neutral in the eyes of the law. A couple of crypto exchange offices opened in Serbia since 2016 most notably ECD.rs exchange office have been operating in Serbia since 2012 with several Bit Coin ATMs stationed in Belgrade. The State itself doesn’t offer any ancillary beneficiations or tax breaks to businesses which involve cryptocurrency but remain neutral in the eyes of the law to users which stand to benefit from this technology.

It’s safe to say that including all previously stated arguments that Serbia although not welcoming to crypto world won’t shut it’s door on the possibility in the near future. Serbia has the potential to become a very prosperous base for setting up Mining Heavens and ensuring the crypto mining business to flourish even at times when the price for coins are dwindling.