The Argentine government begins to inquire into the energy consumption of companies in mining Bitcoin after some provinces across the country faced blackouts in the last few days of the past year. CAMMESA, the state-owned electricity company, sent a memo to large consumers of electricity, asking them to reveal if they were mining cryptocurrency. If so, companies should disclose their actual energy consumption so that a price increase can be coordinated. In addition, these companies would be required to invest in electrical infrastructure.
The Argentine government targets the mining bitcoins
The Argentine government is trying to accurately determine how much energy bitcoin miners are consuming, in order to take action to get out of the current electricity crisis. CAMMESA sent a letter to all registered large consumers, asking them to provide data on energy consumption, used for the operations of mining. The demand also concerns the energy consumed by what the company calls the ” server group », That is, equipment that is used to cool miners and other associated materials.
According to local media reports, the Argentine government may consider taking steps to force miners to pay more for this energy, launching a new tariff system while encouraging cryptocurrency miners to invest directly in the power system. This plan will be implemented with the aim of relieving the stress that these operations inflict on the national electricity grid, which faces power cuts sometimes affecting more than 80,000 citizens and causing demonstrations.
the mining clandestine
Local cryptocurrency experts have Explain that some companies have migrated by offering their space to host operations of miningof cryptocurrency, which negatively impacted the power grid. An anonymous source revealed that these businesses were common and that there were more than 200 such farms, at least half of which were based in Buenos Aires, Argentina’s capital.
The reason for the emergence of covert operations is said to be the profits investors can make by avoiding taxes. Acting covertly can accelerate return on investment (ROI) times for investors in the mining , who could get their money back in six months. For comparison, payback times for other operations are from 18 months.
The companies of mining praise Argentina for its affordable energy costs. One of those companies is Bitfarms, which is already building a mega complex of mining in partnership with a private third party who will ostensibly provide electricity without harming the national grid.
Electricity shortages caused by theminingwhich is actively gaining momentum have recently arisen across the world, becoming a problem nationwide. Likewise, this could be one of the reasons why China has banned cryptocurrency in its territory. Either way, the booming industry will certainly seek to come out a winner of this unfavorable situation.
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