Skip to main content

Report: Amid pullback, Argentinian Bitcoin miners thriving

Institutional miners and hobbyists alike are taking advantage of energy subsidies to cash in.

While the broader crypto market suffers through a painful slump, a new report today indicates that Bitcoin miners in Argentina are thriving as they take advantage of convoluted energy policies. 

A report from Bloomberg republished in the Buenos Aires Times says that residential mining is picking up due to a mix of factors, including currency controls, energy subsidies, and rampant inflation.

The favorable mix of conditions has even brought in international attention as Canadian mining company Bitfarms Ltd. looks to set up what will reportedly be the largest mining operation in South America — part of a flourishing crypto business scene throughout the country. Earlier in the year, Bitfarms estimated that the new facility could mine BTC at a cost of just over $4,000 per coin.

"Although the price of bitcoin is at its lowest level in the last few months, mining BTC in Argentina is still profitable due to the low cost of energy in dollars," said Agustin Beltramo, a international crypto reporter for Cointelegraph in an interview.

However, Beltramo cautioned against families rushing out to buy mining equipment, saying that the upfront costs can be more prohibitive than some expect.

“The reality is that even though energy in Argentina is cheap, not everyone is going to see profits overnight. Mining power is a key factor in calculating the benefits of mining in Argentina,” he said.

“Those who have been mining for some time are the real winners, since they have had mining equipment for a long time and it is assumed that they have already amortized it. Those who are just getting started in cryptocurrency mining will see profits in the medium/long term.”

One cheaper option for Argentines looking to make passive income may be operating a Lightning Network node, however. Nicolas Bourbon, an Argentinian Bitcoin advocate quoted in the report, is a vocal proponent of the layer 2:



from https://ift.tt/3p70AwX
https://ift.tt/3fzLOvx
Labels:

Comments

Post a Comment

Any questions, Please.

Popular posts from this blog

ENS DAO delegates offer perspective on DAO governance and decentralized identity

AlphaWallet CEO and Spruce co-founder talk about their roles as contributors to the Ethereum Name Service following the project's recent airdrop. Earlier this month, the Ethereum Name Service, or ENS, formed a decentralized autonomous organization, or DAO, for the ENS community.  Cointelegraph spoke to two ENS DAO delegates who applied for the opportunity to represent the community and stay involved in the decision making process: Victor Zhang, CEO of AlphaWallet, an open source Ethereum wallet, and Gregory Rocco, co-founder of Spruce, a decentralized ID and data toolkit for developers. Zhang spoke about his experience as an external contributor to ENS and an early supporter since 2018. Zhang initially sought to help ENS by offering Alpha Wallet as a user-friendly tool for  resolving .eth names and cryptocurrency wallet addresses. Essentially, if a user inputs an .eth name in the AlphaWallet, it will show the wallet address, and vice versa using reverse resolution. Alpha...
Post a Comment
Read more

How Social Platform Chingari is Using Web 3.0 to Transform the Traditional Way We Use Social Media

The world is changing. This isn’t news to anyone, but sometimes it is nice to realize that—contrary to news headlines—not all the change is bad.  In fact, the last decade has seen so much innovation and so many improvements to technology that even 2015 seems like a different world.  Internet speeds, connecting with anyone globally (for free), and our ability to reach large groups of people without a middleman is nothing short of revolutionary. When it comes to technology evolution, this often happens with different iterations.  Once a system is mature, there’s a better idea of what we would like to change and improve.  We go back to the drawing board, target our creative minds at the issues, and create a new version that has evolved to better meet our needs.  The Internet has followed this model since its inception, evolving through three distinct stages.  We are only at the cusp of the third stage, called Web 3.0, with technologies such as blockchain and ...
Post a Comment
Read more

Lightning Network Exploits Continue to Hinder the Bitcoin Scaling Solution

via Bitcoin News https://ift.tt/3mGmODQ While bitcoin has run-up to all new price highs in 2020, a great number of crypto supporters have been complaining about the mempool backlog and the high fees needed to send a transaction. Meanwhile, the Lightning Network is far from seeing widespread adoption, and a number of attack vectors have been revealed this year. At the time of publication, the Bitcoin ( BTC ) mempool (backlog of transactions) shows 113,000+ unconfirmed transactions and the backlog hasn’t been this high since 2017. When the bull run took place three years ago, transaction fees and unconfirmed transactions shot through the roof. Currently, according to bitcoinfees.cash data on October 31, the next BTC block fee is $10.77 and the current median fee is $6.43. Even with the high fees and the mempool clog , the greater bitcoin community is still transacting mostly onchain. The Layer 2 protocol built on top of Bitcoin called the Lightning Network (LN) was supposed to eas...
Post a Comment
Read more