Miner Alejandro Quiles believes that the low cost of electricity allows this activity to be very profitable in Venezuela. Alexis Lugo considers it necessary to obtain a license from SUNACRIP for the industry to grow and consolidate in the country.
The fluctuations in electrical energy cause anxiety in Venezuela daily, as it reminds citizens of the 2019 general blackout. Curiously, the profitability of mining Bitcoin (BTC) in the South American country is possible for those who do it industrially.
Alejandro Quiles, who mines cryptocurrencies with his brothers, commented that this activity is highly profitable in Venezuela. He explained that the cost of electricity contributes to this since they only pay between USD 10 to USD 12 for the service monthly.
Quiles said that Venezuela is a country where people still enjoy the low cost of electricity. He pointed out that the National Electric Corporation (CORPOELEC) established a rate of USD 0.010 KW/h at the industrial level.
The specialist specified that residential mining is illegal, according to Venezuelan law, and cannot make anyone a millionaire. José Parra, who has a mining company, agrees with Quiles that this activity is profitable at a macro level due to the competitive electricity rates.
Bitcoin Mining Is the Most Profitable Industry in the Country
Venezuela has been home to large industries and companies, such as the oil company, and has many natural resources that it can exploit. However, Alejandro Quiles says that cryptocurrency mining is the industry that produces the most money.
He believes that converting electricity into money allows Bitcoin mining to be the most profitable niche in Venezuela. He points out that such activity can boost the economy, which experiences high inflation.
Quiles also agrees with José Parra that it is possible to obtain 300% more profits in Venezuela than in other countries of the region. However, this may vary depending on the devices used and the number of operational ones.
The expert estimated profits of up to USD 60,000 per month, in the case of mining with old equipment. Discounting operational expenses and the payment to employees, mining companies keep over 60% of monthly production.
Cryptocurrency Miners Must Fall into Centralization to Operate in Venezuela
Both miners highlight that mining Bitcoin and other currencies is profitable in Venezuela. However, they point out that it is essential to register with SUNACRIP, the only entity authorized to regulate cryptocurrencies in the country.
Alejandro Quiles says that miners must obtain a license from SUNACRIP even though it is a cumbersome process. Otherwise, the authorities could seize their equipment, and getting it back would be extremely difficult.
Alexis Lugo, another cryptocurrency miner from Caracas, said it was right to get a license and pay taxes to the state. He believes that this would allow the industry to grow and consolidate in Venezuela.
Some miners prefer to operate undercover since they must invest around three months complying with the requirements of SUNACRIP. However, Quiles says it is worth it because mining would grow further in Venezuela if all operators had a license.
This Venezuelan miner recognizes this goes against the principles of Bitcoin, which call for decentralization and the non-interference of states. He considers that the regularization points to the electrical service, essential for mining, for which he sees it necessary to give in to the authorities.
By Alexander Salazar
