Bitcoin miners thrive amid 'ridiculous' energy subsidies in Argentina

The number of residents in Argentina is turning to Bitcoin mining due to economic uncertainty and generous government electricity subsidies, Bloomberg reported today. "Even after Bitcoin price correction, the cost of electricity for anyone mining from their home is still a fraction of the total revenue generated," said Nicolas Bourbon, a crypto mining veteran. This was made possible thanks to a long-term policy that allowed Argentines to receive substantial electricity subsidies from the government. So much so that a consumer's energy bill is said to be only 2-3% of the average monthly income. 'Bitcoin will get rid of environmental concerns': Compared to Iris Energy, electricity costs are at least twice as high in other Latin American countries such as Brazil, Colombia or Chile. Meanwhile, Argentines are desperate against alternative assets to hedge against widespread inflation of 50% annually. To make matters worse, the government further exacerbated the depreciation of the Argentine peso by allowing residents to only change their pesos by up to $ 200 a month. “The money generated by crypto miners is usually sold at the parallel exchange rate, but the energy is paid at a subsidized rate. Revenue is very high right now, ”explains Bourbon. Big players looking to Argentina Large international mining companies have also noticed the boom. Bitfarms, one of the largest Bitcoin mining companies in the world, announced that it plans to use a local power station in Argentina to generate up to 210 megawatts of electricity. “We were looking for places where electricity generation systems were over-built. Economic activity in Argentina is declining and electricity is not fully used. "It was a win-win situation," Bitfarms president Geoffrey Morphy told Bloomberg. While the grants do not fully cover the company's activities, Argentina still offers an attractive rate of $ 0.022 per kilowatt hour, which is much more.

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