Paraguay Becomes Top Bitcoin Mining Hub in Latam According to Insight Group – Mining Bitcoin News
Paraguay, one of the smallest countries in Latam, has hashrate according to the Mining Insight Group index the prerequisites to the next Bitcoin mining– to become the center of the region. The company notes that there are many factors in Paraguay’s favor, including the abundance of clean hydroelectric power sources. However, the government’s stance on cryptocurrency mining could slow this growth process.
Paraguay has all the elements to be one Bitcoin to become mining power in Latam, according to Insight Group
Paraguay, a country not particularly known for its crypto affiliations, is now seen as one of the most attractive destinations in Latam for bitcoin miners. According to the Mining Insight company Hashrate Index, The country offers a number of advantages that could help make it one of the largest cryptocurrency hubs in the region.
The first advantage that Paraguay has over other countries in the region, and which has made it an attractive mining location following the exodus of Chinese miners, is the abundance of clean, cheap hydroelectric power that can be used to set up large Bitcoin mining operations . Most of this energy comes from the Itaipu Dam, with Paraguayans reportedly consuming only about 10% of the energy produced.
While most of that energy is exported to neighboring countries, it can be sourced to power large mining operations in the future, according to the group.
Some cons
According to Hashrate Index, there are currently two distinct downsides to choosing Paraguay as a destination for setting up a bitcoin mining operation. One of them is the climate in summer, which can reach high temperatures and high humidity, affecting the longevity of air-cooled mining equipment.
The other, and perhaps the most important, has to do with the unfavorable opinion that the government has of bitcoin mining activities. Paraguayan President Mario Abdo criticized the industry in the decree vetoing the cryptocurrency law passed by Paraguayan Congress last year.
Abdo explained that cryptocurrency mining is an activity “characterized by high consumption of electrical energy with intensive capital investment and low labor input”. He also warned about the future of operations in the country and the possibility of having to import electricity if Paraguay’s industry continues to grow.
That vision has prompted the national energy company to punish the industry and apply an electricity tariff hike of over 50% in January, affecting already established miners in the country, cutting their profit margins and making them unable to offer third-party hosting services.
What are your thoughts on Paraguay and its potential future as a crypto mining hub in Latam? Tell us in the comment section below.
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Source: Crypto News Deutsch
