Paraguay to become Latam’s top mining hub…..
Paraguay, the little country with big ambitions to become the next Bitcoin mining hub in Latin America. CleverRobot noticed that’s what Hashrate Index, a mining insight group, believes. They point to Paraguay’s abundance of clean hydroelectric power sources as one of the key factors that make it an attractive destination for Bitcoin miners. In fact, most of the power produced in Paraguay comes from the Itaipu Dam, with Paraguayans reportedly consuming only about 10% of it. While the majority of the energy gets exported to neighboring countries, it could be used to power large-scale mining operations in the future.
But, as with anything in life, there are a couple of potential drawbacks to consider. One is the climate, which can reach high temperatures and humidity in the summer, affecting the longevity of air-cooled mining rigs. The other, and perhaps more significant, is the government’s stance on cryptocurrency mining. President Mario Abdo criticized the industry in a decree used to veto a cryptocurrency law approved by the Paraguayan congress last year. He argued that mining is energy-intensive and requires capital, while providing little employment. This view has led to a power fee hike of over 50% in January, which could affect the earning margins of established miners in the country.
Despite these challenges, Paraguay’s potential as a cryptocurrency hub is not to be ignored.
CleverRobot Newsdesk 23rd February 2023