Bitcoin Mining Boom takes cheap power to Venezuela while the country moves towards the digital economy - Bitcoin News
Bitcoin Mining Boom takes cheap power to Venezuela while the country moves towards the digital economy - Bitcoin News
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The very low electricity prices in Venezuela have created a strong incentive to break down Bitcoin for a few happy ones who have capital (and dare), miners and infrastructure in the country. The rise of digital currencies has created a new industry that uses cheap energy and transforms them into valuable bitcoins. In other regional news, Axie Infinity, a game to earn, created opportunities for the less happy. Due to the possibilities that these new tools offer, the country is digital.
cheap power makes mining opportunities in Venezuela
The favorable electricity costs create opportunities to use this resource and convert it into Bitcoin, a scarce and more valuable resource. Many investors in the country did that. Theodoro Toukoumidis, CEO of Docorminer, a service-oriented Bitcoin mining company, has more than 80 ASICs who work continuously. according to for him all these machines together cost less than $ 10 per month.
Each of the mining machines, however, costs about $ 400, a high price for a country, the minimum wage of which does not reach the $ 10th. In any case, the price for mining increases even higher, as the miners have to adjust the electricity infrastructure and make repairs in order to be able to connect to the aging power grid. Venezuela is a country that has gone through electricity rationing This led to this, that citizens suffered catastrophic power outages in 2019.
The situation has improved since then, but there are still analysts that are concerned about the effects of a lack of electricity on the operation of the miners. Only last month in an important Venezuelan state separated Because of their supposedly solid power consumption. Since then, these miners have been again connected to the power grid.
The hidden costs of mining
mining has been a regulated and legal activity in Venezuela since Sunacrip, the Venezuelan cryptocurrency guards, established it as such last year. In order to build a mining company, investors have to meet a number of requirements. Compliance with these steps can be somewhat complicated, but they ensure that the government does not theoretically do it. But experience says something else. There were many stories about authorities who visited miners to blackmail them because of their activities.
blossom of the digital economy
All of these factors create a climate that appears to be beneficial for the development of a digital economy and enables some Venezuelans to escape the country's bad situation. While most Venezuelans cannot buy and organize mining operation, there are other ways to earn money with crypto that are associated with lower entry costs. Axie Infinity, a play-to-ear game that was introduced in 2018, enabled some Venezuelans to invest and offer scholarships for others that they can earn during the game.
axie infinity has become so popular that a number of academies that offer scholarships for the game have gained awareness in social networks. Vzlatothemoon, one of these academies, has achieved trend status several times on Twitter. A scholarship in Axie means that an investor lends another player to play the characters needed to play and share the income. This is now so popular in Venezuela that there are currently more than 300 shops accepting SLP Token of the game, as a payment option.
What do you think of the digital economy that is brewing in Venezuela? Tell us in the comment area below.
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