The cyber café transformed its business archetype by exploring cryptocurrency mining to increase its profits in pandemic times.
In Vietnam, an internet café turned its business model into cryptocurrency mining to generate profits in the middle of the quarantine. The business model of cybercafes tends to be obsolete these days. In some countries, mostly Asian and African (and even Latin American) lands, this business structure remains active.
The source that keeps these businesses alive is the crescendo in the video game industry, which often requires better computers that can be expensive for the average gamer. These spaces also serve as spots for the gamer community.
Social distancing and quarantine due to Coronavirus and the arrival of the pandemic situation worldwide affected any types of businesses. In Asia, internet cafes or gaming rooms went to be in a shut-down condition. The owners of these businesses have protested against the restrictions that prevent them from opening their trades.
Mining Cryptocurrencies: The Secret Ways that Cybercafe Owners did not Know until Now
There is always an alternative. An internet café in Ho Chi Minh City, Vietnam, is shifting paradigms by transforming its old business into a more successful one.
The Ciber cafe posted on its Facebook the following statement: “By transforming the business due to the pandemic, the profits went higher than the [Internet room] businesses. Internet room owners who want to do it, please contact me to do it for free.” shared the Computer Star owners, also showing some photos of the equipment and its installment.
The cybercafé did not have to invest in any extra-equipment or kits to start its journey as a crypto-miner already had the ideal equipment required for mining digital currencies. According to various sources, Computer Star also runs a business for the sale of computer equipment. There is a comprehensive line of monitors and computers, each with a set of graphic cards ready to work all day long.
While pent-up demand for Nvidia’s latest range of RTX 3000 series cards created a massive GPU shortage in late 2020 that has lasted into this year, Bitcoin and Ethereum hit the highest all-time price records.
And although the room has probably registered substantial growth in electrical costs, the owners are not worried about it; they claim that profits are well enough to deal with all the expenses. Such gains are even higher than the ones with the previous business. It is not surprising that with the current explosion in market prices, many companies are taking advantage to start digital mining assets.
However, the use of this equipment for cryptocurrency mining could end up wearing down the cafe’s graphics cards, so some of the proceeds might go to consolidate an investment in the purchase of new equipment once the players return after confinement.
By: Jenson Nuñez