A little while ago 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 by venturing into Argentina, 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.
Why 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/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.
Bitfarms, a real-world example paving the way forward 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.
What are the benefits of getting involved for me?
The profit to be found from mining crypto can be seen as a benefit on the surface, but the energy intense methods and amount of effort that goes into undertaking such a task nullifies this a little. So, instead of focusing on profit alone, we will look a little more into some of the other benefits to be found from investing in a crypto miner.
Initially, the time it takes one block of BTC to be mined is 10 minutes, and bearing in mind one block is 6.25 Bitcoins, this is a rather rapid pace for such a valuable asset. There are some countries where industrial electricity is at a reduced rate or subsidised in order to attract business and stimulate economies, making mining Bitcoin a potential investment to look out for in developing nations looking to find foreign investors to maintain growth rates year on year as your chances of success are greater wherever running costs can be lowered.
So, if you are interested in finding out more about Paraguay 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.
Also, if you want to access our other great content, subscribe to our YouTube channel! At Creimerman, our team of professional global citizens would be happy to help you with your personal or professional cross-border ventures and help make them a success.