Did you know that first world countries are not the best for the crypto industry?
In this article we will explain why Latin America is the future of crypto mining.
In the past, the biggest cryptocurrency mining sites were in Europe and Russia. But the war in Ukraine changed things. The machines that perform cryptomining spend tons of energy generating that if you are in a country with high tariffs it is not profitable.
As there is an energy crisis in Europe, it is no longer a good business to invest there. Many mining companies are looking for new places to run their machines. A great option is South America in countries such as Paraguay or Argentina.
ARGENTINA
Put simply, Argentina has the perfect ingredients list to create an environment in which BTC miners are able to thrive. Here are the factors which go hand in hand to allow such rapid growth:
Low/subsidized electricity
Devalued Argentine Peso
Consumer bills to income ratio
So, how do these all fit together in the Bitcoin miner puzzle? Well, low energy costs and high prices of non-local currency assets mean the profit margin for miners is already huge due to the instability of the Peso at the moment.
As well as this, it has been published that electricity bills cost 3% maximum of households’ monthly income, far lower than regional neighbors and so making Argentina only stand out more as an attractive target for crypto miners.
In terms of the energy itself, we’re talking US$0.06/kwh for industrial power, low indeed, but there are mining companies who are negotiating lower prices, indicating potential pull factors for other companies looking to seek out business in Argentina.
PARAGUAY
Many countries or investors do not like the crypto mining industry because of the pollution it generates. That is why Paraguay is the perfect opportunity.
This is because Paraguay creates rather a lot of hydroelectric power, a big proportion of which doesn’t get used. This clean energy is a big bonus for companies overseas looking to maximize their BTC mining operations without causing too much harm to our planet.
Already many companies such as Future Fintech is a Chinese company are investing in Paraguay for the purpose of mining BTC, a move which, should all go well, could open the floodgates to more foreign investment.
These countries with their low energy costs and undervalued currencies are the perfect opportunity to invest in either developing new machines or bringing your crypto mining business here. Paraguay offers you an opportunity to invest in helping the environment through green cryptomining while Argentina offers you a much lower cost than you would have in other countries.
So, if you are interested in finding out more about Cyptomining and its opportunities to develop business, contact us today! Below this article, you will find a link to set up a free fifteen-minute consultation with us to discuss your options further.
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