Cheap Electricity Kicks off Venezuela’s Crypto Mining Boom Paves the Way for the Digital Economy

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Extremely low electricity rates have proven to be a boon for Bitcoin mining in Venezuela. The low electricity prices in this country have created a powerful incentive to mine Bitcoin, but only for the lucky few who have the capital to buy mining infrastructure, reports Bitcoin.cm. According to Theodoro Toukoumidis, CEO of Doctorminer, a service-oriented Bitcoin mining company, more than 80 application-specific integrated circuits (ASICs) running without interruption, in total cost even less than $ 10 per month. There are around 1500 minors, currently connected to the Doctorminers network. The Cost and Journey of Mining in Venezuela Mining is a way to earn cryptocurrency by solving complex math problems using powerful computers. However, the huge consumption of electricity and expensive machines are difficult to overcome. In the case of Venezuela, mining is a legal and well-regulated activity, as established by Sunacrip, the country’s legal watchdog for cryptocurrencies. According to Sunacrips guidelines that came into effect in November 2020, investors must comply with a series of regulations, which makes mining legally acceptable. Sunacrip had duly acted on this situation and slowed down the dubious visits of the authority. The cost of extraction, however, turns out to be exorbitant for Venezuela with a minimum wage of less than $ 10, as each machine costs almost $ 400. Miners must adapt to the electrical infrastructure and make repairs in case the mining price increases. Power failure is another major concern. In August, the power supply was cut by the authority due to massive consumption for mining. Growing Crypto Activity Boosts Venezuela’s Digital Economy Venezuela has also seen a surge in the number of unemployed people turning players into crypto for cash by playing the crypto-based game Axie Infinity. The game has become immensely popular in the country and a number of academies are now offering scholarships to play the game. Scholarships are another way to start playing the game, which is far more expensive to purchase at $ 1,500. In addition, the growing number of Bitcoin miners due to the low cost of electricity is also facilitating the rapid penetration of the crypto-based economy. These economically flourishing activities pave the way for the emergence of a digital economy in Venezuela.

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