• Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA
Friday, May 27, 2022
CryptoMakers
ADVERTISEMENT
  • Home
  • Crypto News
    • Bitcoin
    • Ethereum
    • Ripple
  • Altcoin
  • Blockchain
  • Business
  • Regulation
  • Trading
No Result
View All Result
  • Home
  • Crypto News
    • Bitcoin
    • Ethereum
    • Ripple
  • Altcoin
  • Blockchain
  • Business
  • Regulation
  • Trading
No Result
View All Result
CryptoMakers
No Result
View All Result

Cheap Power Is Creating a Bitcoin Mining Boom in Argentina – Bitcoin News

June 2, 2021
in Bitcoin
Reading Time: 3min read
A A
0
Cheap Power Is Creating a Bitcoin Mining Boom in Argentina – Bitcoin News
0
SHARES
2
VIEWS
ShareShareShareShareShare

Argentina, the ailing South American country, is experiencing a cryptocurrency mining resurgence due to artificially low power rates maintained by subsidies from the national government. This fact, alongside exchange controls and the possibility of selling obtained assets at a higher exchange rate than the official one, is enticing more and more individuals to enter the mining business.

Argentina Is Experiencing a Mining Boom

Argentina is experiencing a mining boom, due to the highly subsidized power rates and exchange controls enabling miners to sell their mined bitcoins at a higher exchange rate than the official one established by the government.

The surging interest in mining cryptocurrencies also has to do with the fact that Argentina is subject to capital controls that forbid citizens from exchanging more than 200 dollars for their local fiat currency, the peso; this, consequently, has also caused a rise in the demand of other convertible currency to safeguard their buying power from inflation.

According to Bloomberg, the subsidies are so high that even with the recent crash in prices, Argentinian miners are still in the green. Nicolas Bourbon, a miner, declared:

Even after Bitcoin’s price correction, the cost of electricity for anyone mining from their house is still a fraction of the total revenue generated.

This fact has also awakened the interest of foreign mining companies in entering Argentina to take advantage of these subsidies. Bitfarms, a Canada-based mining group, secured a deal to mine using power from a local plant for a far lower rate than most comparable alternatives. Geoffrey Morphy, Bitfarms’ president, stated:

We were looking for places that have overbuilt their electrical generation systems. Economic activity in Argentina is down, and power is not being fully utilized. So it was a win-win situation.


Sustainability at Stake

Argentina is the latest country to turn to crypto and mining as a way of gaining more financial and economic freedom for its citizens while facing economic difficulties, as Iran and Venezuela did before. But this mining boom could well affect the integrity of the power grid, depending on the impact the activities have.

This has been the case in Iran, which just recently had to take action banning bitcoin mining until September 22, due to the constant blackouts the power grid is experiencing. Miners in Iran need to be registered to operate legally. However, it is estimated that more than 85% of miners remain unlicensed.

What do you think of the recent cryptocurrency mining boom in Argentina? Tell us in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.


Credit: Source link

ShareSendTweetPinShare
Previous Post

Dental Clinic in Ontario to Accept Cryptocurrency for Its Services – News Bitcoin News

Next Post

Ethereum, Cardano and XRP lead comeback in institutional markets

Related Posts

Eurovision Song Contest 2022 Winners Release NFT for Ukraine Charity Auction – Metaverse Bitcoin News
Bitcoin

Eurovision Song Contest 2022 Winners Release NFT for Ukraine Charity Auction – Metaverse Bitcoin News

May 27, 2022
JPMorgan Foresees Increased Blockchain Use in Finance — Prepares to Offer Related Services – Blockchain Bitcoin News
Bitcoin

JPMorgan Foresees Increased Blockchain Use in Finance — Prepares to Offer Related Services – Blockchain Bitcoin News

May 27, 2022
SEC Drops the Ball on Crypto Regulation and There Are Long-Term Consequences, Says Commissioner – Regulation Bitcoin News
Bitcoin

SEC Drops the Ball on Crypto Regulation and There Are Long-Term Consequences, Says Commissioner – Regulation Bitcoin News

May 27, 2022
Why the Crypto Industry in Indonesia Is Set to Leapfrog Competing Markets – Interview Bitcoin News
Bitcoin

Why the Crypto Industry in Indonesia Is Set to Leapfrog Competing Markets – Interview Bitcoin News

May 26, 2022
Portuguese Parliament Rejects Crypto Tax Proposals During Budget Debate – Taxes Bitcoin News
Bitcoin

Portuguese Parliament Rejects Crypto Tax Proposals During Budget Debate – Taxes Bitcoin News

May 26, 2022
Next Post
Cardano (ADA) hits $2.23, its highest price of all time even as others tank

Ethereum, Cardano and XRP lead comeback in institutional markets

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

ADVERTISEMENT

Weekly Updates

Bitcoin Stabilizes in Tight Range; Support at $27K, Resistance at $30K-$35K

Bitcoin Stabilizes in Tight Range; Support at $27K, Resistance at $30K-$35K

May 25, 2022
Memes in red as Dogecoin and Shiba Inu shed over 80% of their ATH

Memes in red as Dogecoin and Shiba Inu shed over 80% of their ATH

May 20, 2022
Former Binance Execs Create $100M Fund to Spur Crypto Adoption in Emerging Markets: Report

Former Binance Execs Create $100M Fund to Spur Crypto Adoption in Emerging Markets: Report

May 26, 2022
More Downside Ahead for Bitcoin, Says Top Valkyrie Analyst

More Downside Ahead for Bitcoin, Says Top Valkyrie Analyst

May 24, 2022
A Look at What’s Left of Terra’s Defi and Token Ruins – Bitcoin News

A Look at What’s Left of Terra’s Defi and Token Ruins – Bitcoin News

May 21, 2022
Coinbase Has ‘Structural Advantage’ Over Competitors, Cowen Analyst Says

Coinbase Has ‘Structural Advantage’ Over Competitors, Cowen Analyst Says

May 26, 2022
CryptoMakers

This is an online news portal that aims to provide the latest crypto news and real-time updates around the world. Feel free to get in touch with us!

What’s New Here!

  • Eurovision Song Contest 2022 Winners Release NFT for Ukraine Charity Auction – Metaverse Bitcoin News
  • JPMorgan Foresees Increased Blockchain Use in Finance — Prepares to Offer Related Services – Blockchain Bitcoin News
  • The Curious Case of Coinbase’s India Communications Strategy

Subscribe Now

Loading
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA

© 2021 cryptomakers.co.uk - All rights reserved!

No Result
View All Result
  • Home
  • Crypto News
    • Bitcoin
    • Ethereum
    • Ripple
  • Altcoin
  • Blockchain
  • Business
  • Regulation
  • Trading

© 2021 cryptomakers.co.uk - All rights reserved!

  • EvedoEvedo(EVED)$0.082301-0.80%
  • SEENSEEN(SEEN)$2.05-2.27%
  • TadpoleTadpole(TAD)$7.32-1.76%
  • YAM v2YAM v2(YAMV2)$4.70-1.41%
  • CornichonCornichon(CORN)$0.073096-0.86%
  • StacyStacy(STACY)$0.0007100.00%
  • PolkaBridgePolkaBridge(PBR)$0.439876-7.02%
  • DSLA ProtocolDSLA Protocol(DSLA)$0.003681-6.85%
  • lympoLympo(LYM)$0.004392-4.43%
  • Heart NumberHeart Number(HTN)$0.000553-30.47%