Paraguayian Bitcoin Mining Companies suffer from over 50 %-mining Bitcoin messages

Paraguayan mining companies suffer a blow to their profitability due to the steep increases in power fees that the government has introduced for cryptocurrency mining activities. According to Brains Mining Business Developer Nano Grijalba, after the Veto against the crypto law, the change in power fees makes mining hosting in Paraguay an unprofitable business.

Bitcoin mining increase in electricity costs harms paraguayan companies

once seen as oasis for Bitcoin- and Krypto-Miner has changed. Paraguayan miners are now complaining about the price increases that the government has applied for especially for the industry of cryptocurrency mining. According to reports by Nano Grijalba, business developer of Braiins, this price increase of over 50 % is the Bitcoin miner directly with the excuse for the small number of jobs that the industry creates.

Grijalba criticized the ecological logic of these measures. On this topic he specified

Paraguay's decision to increase the fees for Bitcoin mining, a clean industry and at the same time attract emission-rich industries with low fees. We have to give priority to the support of clean industries for a sustainable future.

Hosting activity affected

Grijalba expressed concerns about the future of hosting activities in the country that consist of offering maintenance services for suspected logs for third parties. He explained that the costs and margins of the international market made it impossible to offer this service.

The Paraguayian Congress existed to regulate the cryptocurrency breakdown and the exchange activities in the country July last year limited borders for the power fees for dismantling. However, this law was Objection filed in August by the current president of Paraguay, Mario Abdo Benitez, the declared that the industry was characterized by its "high consumption of electrical energy in intensive capital use and low use of workers".

Abdo Benitez also explained that the growth of crypto mining activities could cause the country to import energy in the future. The congress tried to say goodbye to the cryptocurrency law project without the support of the president, but he lacked the necessary voices, and finally set up it in December.

Grijalba announced that the miners are currently working hand in hand with the authorities to reintroduce laws that would reduce the burden that the miners are currently exposed to. Above, Grijalba :

A new decree is currently being worked on to make it attractive again, we hope that the problem of import taxes is concerned. However, no further details about this new decree were offered. Finally, Grijalba called for the normalization of these activities in the country for the benefit of the national economy.

What do you think about the status of Bitcoin mining in Paraguay? Tell us in the comment area below.

Sergio Göschenko

sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late in the game and entered the cryptosphere when the price increase took place in December 2017. He has a background as a computer engineer, lives in Venezuela and is affected by the cryptocurrency boom on a social level. It offers a different perspective on the crypto success and how it helps those who have no bank account and are under-supplied.

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