Argentina: Bitcoin mining, a booming business for the future?
Yesterday we posted an article to our blog that you may have already read introducing the theme of crypto mining in Latin America. Now, we understand that it was just a general overview and so for those of you interested in the topic, you may well have been left wanting more. Luckily for you, we are continuing this idea today, in Argentina, to be precise, hopefully letting you make up your mind if this could really be the next investment opportunity with your name on it.
Before this, let’s go back to the idea of mining cryptocurrency. It is important to mention right away that it is probably not going to be for everyone, yet this is not to say it will not be for you. Basically, it involves using computers to solve mathematical problems the likes of which would not be cracked by mathematicians of any skill level.
The responsibilities of a crypto miner go beyond the introduction of new digital assets to the market and include monitoring roles to ensure the integrity of the currency is protected.
Before introducing you to all the information related to bitcoin mining in Argentina or if you are considering options to invest or develop business, contact us!. Our specialized team can help you with all your concerns. Click here.
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/subsidised 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 only going to increase (and 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 neighbours 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.
For anyone weighing up their options, real world examples of success (or failure) are important in understanding how viable an investment could be. Bitfarms is a Canadian crypto mining company moving to Tierra del Fuego in Argentina Patagonia in order to mine Bitcoin, which, if successful, sets to be the largest operation of its kind in the country as a whole with 55,000 miners. Negotiating their energy costs to only US$0.022/kwh, a lot lower than the figure we mentioned above, it’s clear Argentina is facilitating companies like this and is open to potential mining taking place on a wider, larger scale.
So, if you are interested in finding out more about Argentina 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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