Report: Bitcoin Mining by Argentine Residents is Booming

Institutional miners and hobbyists alike are taking advantage of energy subsidies to make money.

Report: Bitcoin Mining by Argentine Residents is Booming

While the broader crypto market is experiencing a severe plunge, a new report Monday shows that bitcoin mining activity in Argentina is booming as miners take advantage of a complex energy policy.

The Buenos Aires Times reprinted a Bloomberg report that said mining activity by Argentine residents is increasing due to a combination of factors including currency controls, energy subsidies and inflation.

This combination of favorable conditions has even attracted international attention, as Canadian mining company Bitfarms Ltd. intends to launch the largest mining operation in South America as part of a booming scene in the Canadian crypto business. Earlier this year, Bitfarms estimated that it could cost a little more than $4,000 to mine a single bitcoin at its new facility.

Agustin Beltramino, Cointelegraph’s international crypto correspondent, said in an interview, “Despite the fact that the price of bitcoin is at its lowest level in the past few months, bitcoin mining in Argentina is still profitable due to the low cost of energy in U.S. dollars.”

However, Beltramino cautions against rushing to buy mining equipment, as the upfront costs can be more prohibitive than some might expect.

The reality is that while energy is cheap in Argentina, not everyone can profit overnight,” he said. Mining capacity is a key factor in calculating the benefits of mining in Argentina. “

“Those who have been mining for a while are the real winners because they’ve had the mining equipment for a long time and they’ve probably already amortized it. Those who are just starting to get involved in cryptocurrency mining will profit in the medium to long term.”
The report quotes Argentine bitcoin advocate Nicolas Bourbon, a strong proponent of second-tier solutions, as saying that a lower-cost option for Argentines looking for passive income could be to run a lightning network node.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/report-bitcoin-mining-by-argentine-residents-is-booming/
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