Low cost electrical energy brings Bitcoin mining growth to Venezuela because the nation strikes in the direction of the digital economic system

The very low electricity prices in Venezuela have created a strong incentive to mine Bitcoin for a lucky few who have the capital (and dare) to buy miners and infrastructure in the country. The rise of digital currencies has created a new industry that uses cheap energy and turns it into valuable bitcoins. In other local news, Axie Infinity, a game to make money, has created opportunities for the less fortunate. The country is going digital because of the opportunities these new tools offer.

Cheap electricity creates mining opportunities in Venezuela

The cheap electricity costs create opportunities to use this resource and convert it into Bitcoin, a scarcer and more valuable resource. Many investors in the country have done that. Theodoro Toukoumidis, CEO of Doctorminer, a service-oriented Bitcoin mining company, has more than 80 ASICS working non-stop. According to him, all of these machines combined cost less than $ 10 a month in electricity.

However, each of the mining machines costs around $ 400, a high price to pay for a country whose minimum wage does not reach the $ 10 mark. In any case, the price of mining goes up even higher as miners have to adjust the electricity infrastructure and make repairs in order to be able to connect to the aging electricity grid. Venezuela is a country that has gone through a phase of electricity rationing that saw citizens suffer catastrophic blackouts in 2019.

The situation has improved since then, but there are still analysts concerned about the impact a power shortage could have on miners’ operations. Just last month, authorities in a major Venezuelan state cut power to all miners because of their supposedly massive electricity consumption. These miners have since been reconnected to the power grid with a delay.

The hidden costs of mining

Mining has been a regulated and legal activity in Venezuela since Sunacrip, the Venezuelan cryptocurrency watchdog, established it as such last year. In order to start a mining operation, investors must meet a number of requirements. These steps can be a little tricky to follow, but they ensure that in theory the government does not act against it. But experience says otherwise. There have been many stories of authorities visiting miners to blackmail them for their activities.

In fact, Sunacrip had to clarify that miners without a representative from the institution could not be visited by state security forces in order to curb the frequency of these questionable visits. Because of this, some miners have chosen to hide their activities from the eyes of the regulator. This has resulted in the confiscation of thousands of mining machines by the authorities.

The digital economy flourishes

All of these factors together create a climate that appears conducive to the development of a digital economy and allows some Venezuelans to escape the dire situation in the country. While most Venezuelans cannot buy and organize a mining operation, there are other ways to make money from crypto that come with lower entry costs. Axie Infinity, a play-to-earn game launched in 2018, has allowed some Venezuelans to invest and offer scholarships for others to earn while playing the game.

Axie Infinity has become so popular that a number of academies that offer scholarships for the game have gained prominence on social networks. Vzlatothemoon, one of those academies, has achieved trending status several times on Twitter. A scholarship in Axie means that an investor lends another player the characters they need to play and they share the proceeds. This has become so popular in Venezuela that there are currently more than 300 stores accepting SLP, one of the game’s native tokens, as a payment option.

What do you think of the digital economy brewing in Venezuela? Let us know in the comments section below.

Photo credit: Shutterstock, Pixabay, Wiki Commons

Disclaimer of liability: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement for any product, service, or company. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.


Share post on

Sonic BTC is reader-supported. When you buy through links on our site, we may earn an affiliate commission.

The transition between fiat and bitcoin Bitcoin

The transition between fiat and bitcoin

One world, two systems: Why Bitcoin and Fiat have to learn to live togetherTwo...

By wpadminsonic164
•
Gary Gensler Says Bitcoin is Actual Bitcoin

Gary Gensler Says Bitcoin is Actual

Gary Gensler, the new chairman of the Securities and Exchange Commission (SEC), confirmed the...

By wpadminsonic164
•
Plan B’s stock-to-flow bitcoin pricing mannequin is forecasting $ 100,000 by Christmas, S2F creators are discussing the time mannequin Bitcoin

Plan B’s stock-to-flow bitcoin pricing mannequin is forecasting $ 100,000 by Christmas, S2F creators are discussing the time mannequin

The pseudo-anonymous Bitcoin analyst named Plan B gave its 704,000 Twitter followers an update...

By wpadminsonic164
•
How do NFTs evaluate to Bitcoin? Bitcoin

How do NFTs evaluate to Bitcoin?

Check out this episode on YouTubeListen to this episode:This episode of "Bitcoin Bottom Line"...

By wpadminsonic164
•
Remembering Bitcoin Pioneer Hal Finney (Could 4, 1956 – August 28, 2014) Bitcoin

Remembering Bitcoin Pioneer Hal Finney (Could 4, 1956 – August 28, 2014)

Seven years ago today, legendary computer programmer and recipient of the very first Bitcoin...

By wpadminsonic164
•
Worldline, Bitcoin Suisse accomplice, to allow retailers to simply accept Bitcoin in Switzerland Bitcoin

Worldline, Bitcoin Suisse accomplice, to allow retailers to simply accept Bitcoin in Switzerland

The European payment and transaction service provider Worldline has teamed up with Bitcoin Suisse,...

By wpadminsonic164
•
Bitcoin worth breaks 50,000, bitcoiners put together for brand spanking new all-time highs Bitcoin

Bitcoin worth breaks 50,000, bitcoiners put together for brand spanking new all-time highs

At around midnight on Sunday, Bitcoin price broke $ 50,000, the highest price since...

By wpadminsonic164
•
Discovering Monetary Freedom In Afghanistan Bitcoin

Discovering Monetary Freedom In Afghanistan

Roya Mahboob — the first female Afghan tech CEO, one of TIME’s most influential...

By wpadminsonic164
•

Latest Posts

Uncategorized

Noboni.com: Best Girl’s Online Shopping in bd

Noboni.com is the best Bd online shopping for girls. We 🏷️ offer the latest...

By wpadminsonic164
•
Monero, Stellar, AAVE Value Evaluation: August twenty second – AMBCrypto Information Stellar

Monero, Stellar, AAVE Value Evaluation: August twenty second – AMBCrypto Information

Major cryptocurrencies have shown mixed trading so far, with Bitcoin reversing its losses by...

By wpadminsonic164
•
BITCOIN CRASH (essential add)!! MY NEW STRATEGY, BITCOIN PRICE PREDICTION & BITCOIN NEWS TODAY!! Videos

BITCOIN CRASH (essential add)!! MY NEW STRATEGY, BITCOIN PRICE PREDICTION & BITCOIN NEWS TODAY!!

BITCOIN CRASH (important upload)!! MY NEW STRATEGY, BITCOIN PRICE PREDICTION & BITCOIN NEWS TODAY!!...

By wpadminsonic164
•
Binance allegedly seeks authorities funding underneath regulatory strain, focusing on $ 200 billion valuation – Yahoo Finance Binance

Binance allegedly seeks authorities funding underneath regulatory strain, focusing on $ 200 billion valuation – Yahoo Finance

The world's leading cryptocurrency exchange Binance seeks government funding despite being in the crosshairs...

By wpadminsonic164
•
Bexplus lists Cardano (ADA), provides 100x leverage and 100% deposit bonus – CryptoGlobe Cardano

Bexplus lists Cardano (ADA), provides 100x leverage and 100% deposit bonus – CryptoGlobe

In order to do justice to the fast growing market for Cardano ($ ADA),...

By wpadminsonic164
•
Ethereum’s EIP-1559 improve burned $ 400 million in ETH: report Ethereum

Ethereum’s EIP-1559 improve burned $ 400 million in ETH: report

Ethereum's EIP-1559 upgrade burned $ 400 million in ETH instead of handing it over...

By wpadminsonic164
•
Dogecoin

Why Bitcoin, Dogecoin, Ethereum – and in addition Coinbase – are on the transfer at this time – Motley Idiot

What happened Towards the end of the week, cryptocurrency prices in Friday morning trading...

By wpadminsonic164
•
The transition between fiat and bitcoin Bitcoin

The transition between fiat and bitcoin

One world, two systems: Why Bitcoin and Fiat have to learn to live togetherTwo...

By wpadminsonic164
•