Cheap electricity ushers crypto mining boom in Venezuela paves way for digital economy – Times of India

Cheap electricity ushers crypto mining boom in Venezuela paves way for digital economy – Times of India

Extremely low rates of electricity have proven to be a boon for mining Bitcoins in Venezuela. The low power rates in this country have created a powerful incentive to mine Bitcoin, but only for the fortunate few who have the capital to purchase mining infrastructure, Bitcoin.cm reports. According to Theodoro Toukoumidis, the CEO of Doctorminer, a, services-oriented Bitcoin mining company, over 80 Application-Specific Integrated circuit (ASIC) working uninterruptedly, cost altogether even less than $10 monthly. There are around 1500 miners, presently connected to the Doctorminer’s grid.
The cost and journey of mining activities in Venezuela
Mining is a way of earning cryptocurrencies by solving complex mathematical problems with the help of high-powered computers. The huge consumption of electricity and expensive machinery are challenging to overcome though. In the case of Venezuela, mining is a legal and well regulated activity, as established by Sunacrip, the country’s legal cryptocurrency watchdog. According to Sunacrip’s guidelines that came into force in November 2020, investors have to comply with a series of regulations, which makes mining legally acceptable. Sunacrip had duly acted on this situation and curbed the questionable visits by the authority.
The mining cost, however, proves exorbitant for Venezuela with minimum wage below $10, as each machine costs almost $400. The miners have to adapt to the power infrastructure and make repairs in case the mining price increases. Power outage is another grave
Source…