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Crypto mining booms in Venezuela

Şükriye Akdeniz

Sep 5, 2021

Venezuela's low electricity rates put a smile on the face of Bitcoin miners

The extremely low electricity rates are seen as a boon for mining Bitcoin. According to a published report, low energy costs in the country have created a strong incentive for Bitcoin mining. Those who benefited from the incentive were only the lucky few who had the capital to buy the mining infrastructure.
Theodoro Toukoumidis, CEO of Doctorminer, a service-oriented Bitcoin mining company, emphasized that more than 80 ASICs are running nonstop and cost less than $10 per month. At the same time, approximately 1500 miners connected to Doctorminer's network are still operating.
Mining refers to a way of earning cryptocurrencies by solving complex mathematical problems through high-powered computers. Mining in Venezuela is a legal and well-regulated activity.
At the same time, the cost of mining, with each machine costing around $400, proves quite high for Venezuela with a minimum wage of less than $10. It is also said that in August, the intensive power supply used for mining was intentionally cut off by the government from time to time.
In addition, the growing number of Bitcoin miners due to the low cost of electricity also facilitates rapid penetration into the crypto-based economy. These economically flourishing activities herald the imminent emergence of a digital economy in Venezuela.

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