Miner Alexis Lugo – CVBJ

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Highlights:

Sunacrip has accelerated the industrialization of mining in Venezuela, according to the specialist.

There is no exact way of knowing how many Bitcoin miners are operating in Venezuela.

Mining Bitcoin (BTC) in Venezuela is a profitable business, with which good profits can be made. There are two conditions for this: operate in accordance with the law and necessarily add recurring power outages to the business model.

This was brought to CriptoNoticias by Venezuelan miner, Criptoneros CEO and BTC enthusiast, Alexis Lugo, in an exclusive interview. According to the specialist, “you will always suffer black-outs” if you want to mine cryptocurrencies in the country, even while doing a legal, regulated activity and in an industrial zone.

When engaged in this business, they should be clear that some part of their business will be affected by power outages. As a general rule, if you are a miner, having the power turned off should be a factor to include in the business model, and even if the power is shut off every day for up to 4 hours, it will still pay off mine. Bitcoin here.

Alexis Lugo, Venezuelan Bitcoin miner.

Lugo emphasizes that this profitability is also granted by being part of a recognized or regulated industry. This, he says, has been accelerated by actions taken by the National Superintendence of Crypto Assets and Related Activities (Sunacrip), which has promoted a legal framework to work with cryptocurrencies.

“This is positive, because I agree that we are graduates and that we have to pay taxes in one way or another, because in this way the industry becomes visible and gains weight in the industrial park. of Venezuela, ”he commented.

Alexis Lugo provided us with photographs of his mining equipment in operation / Source: Alexis Lugo.

Impossible to know how many Bitcoin miners there are in Venezuela

Alexis claimed that there is no exact way of knowing how many Bitcoin miners are operating in Venezuela, because just as there are organizations and businesses that adhere to the law, “there are many more that operate clandestinely “.

Venezuela’s electricity consumption for BTC mining, he says, is 0.1% of the total. “And that’s a lot of electricity that we carry in the Bitcoin network,” he suggested. “There are a lot of minors in Venezuela, but it’s impossible to know how many there are,” he said.

Lugo points out that mining in Venezuela, while profitable, doesn’t mean it’s easy. “When you go to the mine you have to start by choosing the space and follow the legislation, which says it has to be in an industrial area,” he said.

But there are limits: “You’re not going to rent an industrial warehouse if your operation is up to 50 machines, because the costs are very high,” so you should aim for around 100 machines, as needed.

Once the problem is overcome, he described, it is necessary to clarify what concerns the electrical issue, presenting the project to Corpoelec and bringing a draft constitutional act of the mining company to Sunacrip. Then at the end you get the permission. However, it is good to clarify that in general, complying with all of this takes a reasonable time and is not as simple as it is shown.

“We are already starting to see that the number of steps to legally extract in Venezuela is quite sufficient,” he said, adding: “a small operation [de 10 mineros] It is very difficult to achieve this in Venezuela, especially if you are alone, as it requires investment.

“If you have the space and the capacity to invest, it will surely be good for you, as long as the regulations and legality are respected. It can always be done underground, but you have to understand the risks you can run, ”he explained.

The Venezuelan bureaucracy, “very heavy”

Lugo stressed that in Venezuela the bureaucracy, which has always existed, “is very heavy” and the issue of mining is no exception.

“They ask you to register with this organization, but you have to have a specific document and the bureaucracy begins, which has always been the case, and the governing body for cryptocurrencies, Sunacrip, is no exception. It is not impossible to do, but it is bureaucratically cumbersome. So if you have the purchasing power to pay someone dedicated to it [gestor]You can have your papers up to date, quickly, quickly, ”he said.

But that’s good, in his own words, “because it filters out malicious entities.” “It’s a way of filtering activity. If you want to do it without a license, you can do it, but at some point the law will fall on you, ”he warned.

Sunacrip is always there, waiting and knows who you are. The inspection may take a long time, but it will always come. All of us who are active in cryptoassets should be registered in the Complete Cryptoasset Services Registry.

Alexis Lugo, Venezuelan Bitcoin miner.

Alexis has been a cryptocurrency miner for five years / Source: Alexis Lugo.

Several cryptocurrencies are mined in Venezuela

Alexis Lugo pointed out that in Venezuela Bitcoin is mining to a large extent, but there is also room for other cryptocurrencies, such as Ether (ETH), the currency of Ethereum and litecoin.

It also indicates that the activity is performed with GPUs, or graphics cards, and ASIC miners. In your particular case, mine with the Antminer S9, from Chinese Bitmain. Lugo provided us with images of some of its miners, ASUS GPU platforms.

Regarding the material, he brought up the issue of the Chinese ban, a situation he appreciated, because it generated, in his words, a “boom time”, where anyone who wanted to get into the business. , was going to be able to do that.

The large number of mining companies that liberated themselves from China did two things: they moved to other countries, like Kazakhstan, Iran or the United States (…) and sold their equipment, and many reached this hemisphere, where Venezuela was no exception: very cheap mining equipment was obtained and that was the time when people could get into the business and get their ROI in less than five month.

Alexis Lugo, Venezuelan Bitcoin miner.

Can mining help Venezuela’s recovery?

To close the interview with Alexis Lugo, we asked him if the Bitcoin mining industry could influence an economic advance in Venezuela. He asserted that although this is what is desired, it is currently a very difficult task.

“We want [los empresarios] that mining is helping the country’s recovery, but it is difficult to do so. I wish it was like that, and that’s what we were looking for, but there are players who view Sunacrip workouts in a prohibitive way, ”he said.

Lugo believes that it takes a lot of money to be able to get into mining activity, although electricity in Venezuela is cheap and there are many options for connecting to the internet. “The truth is that setting up a mining farm is quite expensive, especially in the electrical installation part,” he commented.

“I want mining to help, yes, but at the moment it’s a little difficult for that to happen,” he concluded.

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