Subsidized Energy And Shrinking Economy Lead To Bitcoin Mining Boom In Argentina
Low energy costs, high inflation and restrictive capital controls have pushed residents of Argentina to mine bitcoin in their homes.Bitcoin miners in Argentina are taking advantage of the country’s shrinking economy and its debased currency to harvest oversized returns, powered by cheap, government-subsidized energy, Bloomberg reported.“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,” Nicolas Bourbon, who has experience mining bitcoin from Buenos Aires, told Bloomberg.Miners are....
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The fines will reportedly triple compared to current rates, while repeated violations will lead to jail time. The Iranian government will increase penalties for the use of subsidized energy in crypto mining. The move marks another step in the tightening of mining regulation in the country that had faced energy shortages in recent years. On April 16, the Tehran Times reported, citing the country’s Power Generation, Distribution, and Transmission company, that the government plans to drastically increase the fines rates for the mining operators who use subsidized electricity. The company's....
The government says that mining “presents challenges to the infrastructure of the concession area to which they are connected.” China’s crackdown on mining has led miners to search for other countries in which to continue their operations. Promises of reduced costs led some to Argentina. However, the country’s government has now applied new rates for crypto miners in the province of Tierra del Fuego.Argentina’s Energy Secretary of the Ministry of Economy published and announced resolution 40/2022, eliminating the energy government subsidies for crypto mining energy usage. The new rates....
Institutional miners and hobbyists alike are taking advantage of energy subsidies to cash in. While the broader crypto market suffers through a painful slump, a new report today indicates that Bitcoin miners in Argentina are thriving as they take advantage of convoluted energy policies. A report from Bloomberg republished in the Buenos Aires Times says that residential mining is picking up due to a mix of factors, including currency controls, energy subsidies, and rampant inflation. The favorable mix of conditions has even brought in international attention as Canadian mining company....
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....
Bitfarms, a bitcoin mining company, announced last week that construction is underway for a mega bitcoin mining farm in Argentina. The facility, which is designed to accommodate 55,000 miners, will be finished by next year. This is yet another signal that mining companies are looking for new areas with favorable conditions and cheap energy to migrate to, including places like Texas and El Salvador.
Bitfarms Expands to Argentina
Bitfarms, a Nasdaq-listed bitcoin mining company, announced it started building what will be a mega bitcoin mining farm in Argentina last week. The....