Cheap electricity attracts Bitcoin (BTC) miners to Venezuela

Sun 05 Sep 2021 ▪ 14h13 ▪ 3 min read — by Mary Anderson

Incredibly low power rates of electricity in Venezuela have served as a powerful incentive for crypto miners all around the world. According to Theodoro Toukoumidis, CEO of Doctorminer, it takes less than $10 (~£7.23) per month to pay for the continuous operation of more than 80 application-specific integrated circuits (ASICs). Around 1,500 miners are now connected to the network. Undoubtedly, there are many more people who want to mine crypto in Venezuela but don’t have enough money to buy the necessary equipment.

Why are there so few miners?

Mining is a method of obtaining Bitcoin and other digital assets by solving complex computational math problems. The equipment must be powerful and, therefore, expensive. Moreover, a lot of electricity is required, with the power bills making quite a dent in the citizens’ wallets.

According to The Times of India, Venezuela is a perfect heaven for miners. Mining is legal there and is under the control of the National Superintendence of Cryptoassets and Related Activities (Sunacrip). Yet, not every local resident can become a miner. The minimum wage in the country doesn’t exceed $10 (~£7.23), while a suitable computer costs about $400 (~£290).

However, even those who could afford the necessary equipment face problems like regular power outages. In August 2021, the authorities cut off power supply as miners overloaded the network.

Venezuela establishes a rather suitable ecosystem for miners, luring a plethora of them to come and settle in the country with one of the lowest power rates in the world. Digital ecoonomy is truly thriving there. Many Venezuelans left their jobs and started playing Axie Infinity, where AXS tokens are earned. This game is gaining huge popularity, even though access hasn’t been free for a long time. The currrent increase in the number of Bitcoin miners also contributes to the development of the digital economy in Venezuela.

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Mary Anderson

I am sure that crypto assets are a new type of economy. We are at the origins of the crypto revolution. Right now, it is worth studying what cryptocurrencies and the blockchain are in order to make the most of this knowledge and these skills in the future.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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