Venezuela’s extremely low electricity prices provide a lucky few who have the capital (and the courage) to buy mining machines and infrastructure in the country with a powerful incentive to mine Bitcoin. The rise of digital currency has created a new industry that uses cheap energy and converts it into precious bitcoins. In other regional news, Axie Infinity is a money-making game that creates opportunities for the unfortunate. Because of the possibilities offered by these new tools, the country is going digital.
Cheap electricity creates mining opportunities for Venezuela
The cost of cheap electricity creates an opportunity to use this resource and convert it into a scarcer and more valuable resource like Bitcoin. This is what many investors have been doing in the country. Theodoro Toukoumidis, CEO of Doctorminer, a service-oriented Bitcoin mining company, has more than 80 ASICS working non-stop. according to For him, all these machines together cost less than $10 a month in electricity.
However, the cost of each mining machine is about US$400, which is a high price for a country where the minimum wage has not reached the threshold of US$10. In any case, the price of mining will be higher, and miners must adjust the power infrastructure and perform repairs to connect to the aging grid.Venezuela is a country that has experienced electricity rationing period This caused citizens to suffer a catastrophic power outage in 2019.
The situation has improved since then, but there are still analysts worried that the power shortage may have an impact on the operation of the mining machine.Just last month, the authorities of an important Venezuelan state Disconnect Due to the alleged large power consumption, all miners are supplied with electricity.These miners since then reconnect To the grid, after the delay.
Hidden costs of mining
Since Venezuela’s cryptocurrency regulator Sunacrip was established last year, mining has been a regulated legal activity in Venezuela. To establish a mining business, investors must comply with a series of requirements. Following these steps may be a bit complicated, but in theory, these ensure that the government will not take action against them. But experience shows that this is not the case. There are many stories about the authorities visiting miners to blackmail their activities.
In fact, Sunacrip had to Clarify Without the agency’s representatives, the national security forces could not visit the miners to curb these suspicious visits. But because of this, some miners have decided to conduct their activities out of the sight of regulators. This led to the confiscation of thousands of mining machines by the authorities.
The digital economy is booming
The combination of all these factors creates an atmosphere that seems to be conducive to the development of the digital economy and frees some Venezuelans from the severe situation facing the country. Although most Venezuelans cannot buy and organize mining operations, there are other ways to make money with cryptocurrency, and the cost of entry is low. Axie Infinity is a game earning game launched in 2018. It allows some Venezuelans to invest and provide scholarships for others to earn while playing the game.
Axie Infinity has become so popular that many colleges that provide scholarships for games are notorious on social networks. Vzlatothemoon, one of these academies, has been popular on Twitter many times. Axie’s scholarship means that investors lend the characters needed to play the game to another player, and then they share the proceeds.This is very popular in Venezuela now, there are currently more than 300 stores accept SLP, one of the native tokens of the game, is used as a payment option.
What do you think of the digital economy brewing in Venezuela? Tell us in the comments section below.
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