In bitcoin mining, the colder the climate and the cheaper the electricity, the more profitable bitcoin mining is.

Recently, many media reports appeared, whether in “Bloomberg” or “Bloomberg”.Buenos Aires TimesWhich states that Argentina has seen a significant increase in the rate of Bitcoin mining.

Reasons for the high rate of bitcoin mining in Argentina:

Cheap electricity is one of the main attractions for bitcoin miners.

Nicholas Bourbon, a cryptocurrency miner in Argentina, stated that there is an opportunity to take advantage of the new policies implemented by the local government, explaining:

Even after the bitcoin price correction, the cost of electricity for anyone mining from their home is still a small part of the total expected revenue.

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Miners know that state subsidies are ridiculous.

But they simply take advantage of it.

Compared to Colombia, Chile and Brazil, consumer electricity bills are barely 2-3% of the average monthly income in Argentina, making it one of the cheapest countries in terms of electricity bills especially compared to its neighbor Venezuela.

Bitfarm targets Argentina:

Bitfarm Ltd, a Canadian mining company, has signed a power purchase agreement with a private Argentine energy producer, enabling the company to mine cryptocurrency in Patagonia by the beginning of 2022, using a total of 55,000 miners.

The partnership has an 8-year contract and an electricity cost of 0.022 per kWh.

Jeffrey Murphy, President of Bitfarms, said:

We were looking for places with extra electricity generation systems.

Argentina’s economic activity has declined, and energy has not been fully utilized.

So the situation here was perfect for everyone.

Cheap electricity in Argentina has been labeled a policy aimed at winning votes in the upcoming legislative elections by many experts, causing tensions among other political parties.

But miners now see this as a great opportunity to reap profits and survive rising hyperinflation.

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Argentines embrace cryptocurrency amid economic recessions:

Periods of economic downturn in Argentina have led to a significant increase in the use of cryptocurrencies.

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The current inflation rate is around 50% annually, and citizens can legally transfer their money for just $200 per month.

Argentines are now adopting cryptocurrencies as a hedge against inflation.

The number of Argentine user accounts on Binance and Coinbase has increased significantly in the recent period, especially with the continued devaluation of the Argentine peso.

The cryptocurrency that miners generate is usually sold at the parallel exchange rate, but the energy is paid for at a subsidized rate.

At the moment, bitcoin mining revenues are very high, according to the miner “Bourbon”.

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