Is it legal to mine Bitcoins in Denmark?

Denmark's population is among the best educated in Europe, and its population has taken an interest in Bitcoin. The European nation is a contributor to blockchain technology, thanks to Denmark's warm investment climate.

The government doesn't regulate Bitcoin in Denmark, nor do they view Bitcoin as legal tender. However, the Danish government allows Bitcoin to be used as an asset and as a good. Residents of Denmark are allowed to use Bitcoin to perform any legal activity, along with the exchanges that support it.

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Buying Bitcoin in Denmark is fast and easy. There are more than 20 popular exchanges available to residents of Denmark, including Coinbase and Coinmama.

Both of those exchanges have built-in wallets where you can store your Bitcoin and other tokens, as do most of the exchanges on this list.

But that doesn't mean you should use them - storing your Bitcoin on an exchange is risky, as wallets on centralized exchanges aren't secure.

Using a hardware wallet to store your private key securely is the best way to protect your investment, which should be of the utmost priority. We recommend the Ledger Nano S or the Trezor, two of the most popular and trusted wallets on the market.

After your wallet situation is taken care of, it's all downhill from there. Choose one of the exchanges above, verify your identity (if necessary), and trade away.

If privacy is a concern for you and you'd instead not want to expose your identity, Denmark also has three Bitcoin ATMs, which are usually far more private than an online exchange.

Bitcoin Mining in Denmark

Denmark is probably one of the last places on earth you'd want to mine Bitcoin. Electricity prices in Denmark are absurdly high in comparison to countries like China, India, Kuwait, and Georgia.

Your hash rate to power consumption ratio is key for Bitcoin mining profitability, and they're two variables you have control over in the profitability equation.

Using the latest, most efficient mining hardware is the first step. At the time of writing, Bitmain's Antminer S19 is top-of-the-line, hashing at 95 Th/s, and drawing 3250 watts from the wall.

When we plug those numbers into our mining profitability calculator, and using Denmark's electricity price of $0.30 per kWh, profitability comes out to negative $6,700 per year.

The same miner would turn a profit of $1,162 with the current price of BTC in Kuwait because Kuwait's electricity is only $0.02 per kWh.

Bitcoin mining may be a profitable way to acquire Bitcoin for tech-savvy individuals with a lot of time, energy, and money to invest upfront, but only in certain situations, and certainly not in Denmark.

If you want Bitcoin now, buying it from an exchange or a peer is your best bet.