Paraguay will become the first bitcoin mining centre in Latin America

 

Paraguay will become the first bitcoin mining centre in Latin America

Paraguay :

• one of Latin America's smallest countries

• has the necessary conditions to become

• the next bitcoin mining centre in the region

• according to the Hashrate Mining Exploration Group Index.

The company notes that there are many elements that support Paraguay, including the abundance of clean hydropower sources.

However :

the Government's attitude towards cryptocurrency mining could slow this growth process.

Paraguay has all the elements to become the mining force of bitcoin in Latin America, according to the Insight Group

Paraguay :

1. a country not particularly known
2. for its cryptocurrency affiliation
3. is now one of Latin America's most
4. attractive destinations for bitcoin miners.

According to the mining company's Hashrate Index

The state offers a series of benefits that can help it become one of the largest cryptocurrency centers in the region.

Paraguay's first advantage over other countries in the region

What made it an attractive location

for miners after the migration of Chinese miners

It is an abundance of clean and cheap hydropower

which can be used to build large bitcoin mining operations.

Most of this energy comes from the Itaibo Dam, where Paraguayans are said to consume only about 10% of the energy produced.

While most of this energy is exported to neighboring countries, it can be obtained to operate large mining operations in the future, according to the group.

The Hashrate indicates that there are currently two different flaws in Paraguay's choice as a destination for the establishment of bitcoin mining.

The first is the summer climate

which can reach high temperatures

and high humidity, affecting the longevity of air-cooled mining devices.

The other, perhaps more important, concerns the unfavourable view that the government has bitcoin mining activity.

Paraguay's president :

Mario Abdou :

criticized the industry in the decree used to veto the cryptocurrency law passed by the Paraguayan conference last year.

Abdou stated that cryptocurrency mining was an activity "characterized by its high electricity consumption, with extensive use of capital and little use of labour."

He also warned of the country's future activity and the possibility of having to import energy if Paraguay's industry continued to grow.

This vision led the National Electricity Company to punish the industry, introducing an increase in power charges of more than 50% in January

This affects the miners already in force in the country

This reduces their profit margins

and renders them unable to provide hosting services to third parties.