Argentina is a place where the electricity generating units are present in abundance. However, during the current situation of COVID-19 destruction, the economic activity has crashed down, and inflation is increasing at a steady pace. However, the advantage of having a cheap and plenty of electricity supply has caused the crypto miners to open up a new farm in their homes.
The miners who are operating crypto farms from their homes can settle their energy bills within 2%-3% margins of their income. Over the last few months, when states like New York are introducing a three-year ban on crypto mining, a significant increase of crypto miners can be witnessed in South American countries. The news was first published by Bloomberg and later endorsed by the local media outlet Buenos Aires Times.
Crypto Mining Institutes already Heading to Argentina to Take Advantage of the Subsidized Electricity
Bitfarm is a crypto mining enterprise based in Canada. A few days ago, the crypto mining firm drafted and signed a partnership contract with a private mining corporation native to Argentina. In lieu of this agreement, Bitfarm would be able to mine cryptocurrencies anywhere from the Patagonia region starting from 2022. The new mining venture plans to establish 55 thousand independent crypto mining machines that would be operating for a period of the next eight years.
Nicolas Bourbon is a local crypto-miner in Argentina who claims that the presence of amazingly cheap and subsidized electricity is a huge fuel cost relief for crypto miners. In comparison to its neighboring counterparts like Chile, Brazil, Colombia, and Peru, the miners can take care of their electricity bills with a negligible portion of the profits they can generate.
The Government and Locals of Argentina are Onboard with the Increasing Crypto Mining Operations
One of the most important factors that have contributed to the rising crypto mining projects in Argentina is the economic downturns. The inflation rates are rising about 50% every year, and the locals cannot convert more than $200 each month due to the restrictions imposed by the government. On the other hand, the recent election has given rise to cheap electricity costs.
While this tactic has been frowned upon by other political parties but the crypto miners are not backing off from taking advantage of this situation. It is no surprise that Coinbase and Binance digital wallets increased by leaps and bounds in the region during the last few months. It seems that the locals have embraced cryptocurrencies as a means to hedge the loss of the constantly devaluating Argentinian Pesos.