Mining farms have closed, abandoning Kazakhstan, Iran, and other Asian countries. Paraguayan miners firmly believe that the industry will take a big boost when the regulation is approved.
Bitcoin mining, which, in the middle of last year, generated more than 50% of its computing power (or hash rate) in China, begins to move away from the traumatic circumstances that take effect in Asia and now are heading toward a new direction.
The industry seems to have a promising future in Latin America, where the network is getting mined with geothermal energy from the volcanoes of El Salvador, and there is potential to get exploited in other countries such as Paraguay, Argentina, or Costa Rica.
Circumstances are forcing Bitcoin miners who have remained on the Asian continent to pursue new lands. After China started to combat digital mining and punish all activities related to cryptocurrencies, the mining centers got forced to close and leave the territory.
Many centers took refuge in Kazakhstan due to its proximity to China. The difficulties have also been concentrated in this country, affecting the production of such miners. In less than a year, they have had to face power and Internet outages, as well as riots and Russian troops roaming the entire region.
Asia is a territory that becomes hostile to Bitcoin miners, also taking into account that Iran recently decided to ban Bitcoin mining because, according to the authorities, mining activity has caused power outages.
Such movements might get repeated in almost all the Asian regions, which is gradually becoming an unfriendly continent with cryptocurrencies. The State Bank of Pakistan, for example, has submitted a document to the High Court calling Bitcoin and other cryptocurrencies “illegal” and useless for commercial purposes, local media have reported.
The truth is that as the restriction against cryptocurrencies and Bitcoin mining grows, more and more miners are now seeking greater geopolitical, economic, and energy stability for large-scale mining farms.
Paraguay and the World map of Bitcoin Mining
This year the bill that the legislators of the Guarani nation would be discussing will be approved, and it will get presented to the Chamber of Deputies in April. The regulations seek to establish a clear framework for Bitcoin and other cryptocurrencies.
Ribeiro adds that digital mining in the country has several barriers that might limit its growth and expansion. One of these barriers is that there is no capacity to feed large mining farms.
Ribeiro said it is one thing to have a large electrical capacity and quite another thing being able to use it, detailing that Paraguay’s electricity consumption law establishes a maximum of 6 MW for any industrial activity. It is one of the main reasons why, until now, there are no large farms in the country but small-scale miners.
Experts in Bitcoin mining in Paraguay such as Fernando Arriola and Juanjo Benitez Rickmann agreed that the digital mining sector would boost when the bill is approved, which they hope will happen this year.
By: Jenson Nuñez
