Crypto Mining In Boom; Electricity Becomes Cheap In Venezuela

Nearly 80 computers, each worth around $400 and the size of a shoebox, create $10,000 in bitcoin equivalent per month at the Doctorminer company in eastern Caracas.


Venezuelan army mining bitcoin
VENEZUELAN ARMY MEMBERS ASSEMBLE SPECIALIZED COMPUTERS FOR PRODUCING BITCOIN, A DIGITAL ASSET THAT CAN BE TRADED FOR HARD CURRENCY SUCH AS DOLLARS AND EUROS. CREDIT: THE VENEZUELAN ARMY’S 61 BRIGADA.

CARACAS: The cacophony of dozens of computers operating nonstop on a factory floor in Caracas is deafening. This is the sound of a bitcoin mine, one of many in a country where cheap electricity has made cryptocurrency mining a lucrative business.

Nearly 80 computers, each worth around $400 and the size of a shoebox, create $10,000 in bitcoin equivalent per month at the Doctorminer company in eastern Caracas.

The process generates a lot of heat, which necessitates the use of four huge fans to keep it cool.

Crypto mining gives an economic opportunity for a lucky few in a country in recession and dealing with the world’s highest inflation of around 3,000 percent in 2020.

This is made feasible by one of the world’s lowest electricity prices: the Venezuelan government substantially subsidises the commodity.

The use of high-powered computers to solve hard mathematical problems is known as “mining,” and the cost of electricity is a significant barrier for miners in many nations.

Meanwhile, the country becomes the 10th largest crypto mining hub by hashrate.

According to the company’s website, Doctorminer now has 1,500 miners linked to its grid.

Because the bolivar’s value has been devastated by years of economic crises, bitcoin is becoming more widely accepted as a form of payment in Caracas.

THE GOVERNMENTAL APPROACH

Nicolas Maduro’s government has also tried to participate, establishing the Petro currency in 2018. The United States outlawed it, and it was largely seen as a sham.

In the same year, Venezuela established Sunacrip, a crypto regulator that has subsequently established a crypto miner registry in the country.

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