Bitcoin mining continues to rise; fees and new projects made South America the global epicenter this week.
This week, South America became the world epicenter for Bitcoin mining thanks to new fees in Argentina. In other parts of the world, there was also a variety of impact news for the sector.
The network is a few months away from entering a stage of volatility, the cause of which will be the expected halving. It is an automatic event of the network, whose objective is to reduce the reward to the miners, and thus generate scarcity and appreciation of the currency.
The great protagonist this week is the increase in rates in Argentina. The South American country is one of the epicenters of business in the region. To this news, others of great interest are added, whose details are presented below.
Argentine Government Raises Miners’ Electric Rates
One of the news that put South America at the center of attention in terms of Bitcoin mining was the increase in electricity rates in Argentina. According to specialized media, the Ministry of Energy of the Latin American nation is applying a substantial increase for companies in the sector.
In this sense, the rate per megawatt per hour would go up to $63.3 dollars. This is the highest band on the Ministry’s scale for energy bills. Buenos Aires has an electricity administration divided between industrial and residential consumption. The second enjoys a subsidy of approximately 70%, so mining from home is a very beneficial option.
With this measure, the invoices for the mining companies based in Argentina are placed at the level of the invoices of the rest of the industrial sectors.
Mining Equipment Flows to Russia Despite Sanctions
Bitcoin mining knows no borders or barriers to its development. The strong sanctions of the West against Russia are not an obstacle for the business expansion in the gigantic Eurasian country. Companies incorporated in that nation experience a great stimulus thanks to the flow of mining equipment.
Manufacturers Bitmain and MicroBT ship large batches to Russian companies, as the United States market would be saturated, according to reports from sources consulted by the outlet. Luxor Technologies COO Ethan Vera said that “More machines are flowing into Russia than anywhere else in the world.”
With this, the Russian Federation remains one of the global epicenters of digital mining, as the huge country is a cheap source of energy and enjoys a cold climate; these are the two essential elements for the industry to flourish.
Halving Will Cause 30% Drop in Bitcoin Hashrate
The Bitcoin halving is expected to have a strong influence on the digital mining business. The halving of miners’ rewards is an event that can cost many small and medium-sized businesses their existence. Thus, the costs of energy and other operating expenses, added to the cut of 50% of the income, can cause turmoil.
The network hashrate would plummet between 15% and 30% after the automatic event. The halving is scheduled to take place in 2024, while this year the halving will take place in the Litecoin network, Important movements in that Blockchain are expected, as well as in its native currency, LTC.
So far in 2023, the Bitcoin chain hashrate is constantly increasing and has been reaching all-time highs without interruption. The reason for this was the appreciation of the currency, which increased business profitability and stimulated more equipment connections.
By Marina Meza
