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Despite Political and Economic Challenges, Bitcoin Mining in Venezuela is Thriving

11 Oct 2022
Despite Political and Economic Challenges, Bitcoin Mining in Venezuela is Thriving

In recent years, Venezuela has become a major player in the Bitcoin mining industry due to its abundance of natural resources and cheap, stable electricity. However, the challenges and benefits of Bitcoin mining in the country are complex and multifaceted.

Barriers that Have Historically Hindered Miners

One of the main challenges of Bitcoin mining in Venezuela is the unstable political and economic climate. The country has experienced economic and political turmoil, including hyperinflation and shortages of basic goods, making it difficult for miners to operate and access the resources they need. In addition, the poorly developed infrastructure in Venezuela can also pose logistical challenges for miners seeking to access necessary equipment and resources.

Despite these challenges, many miners have found success in the country, and Venezuela’s role in the global Bitcoin mining industry is expected to continue growing.

Despite these challenges, many Bitcoin miners have found success in Venezuela, and the country’s role in the global Bitcoin mining industry is likely to continue to grow.

Venezuela has the Potential to Become a Major Bitcoin Mining Hub

There are several significant benefits to Bitcoin mining in Venezuela. One of the main advantages is the cheap, stable source of electricity provided by the country’s abundance of natural resources such as oil, natural gas, and hydropower. Low electricity prices are a crucial factor in the profitability of Bitcoin mining, making Venezuela an attractive location for miners.

Furthermore, the relatively lax regulatory environment in the country has also made it an attractive destination for Bitcoin miners. The lack of strict regulations can make it easier for miners to set up and operate their businesses.

But Venezuela has also created their own legal framework for cryptocurrency activities which also helps to reassure investors :

  • National Superintendency of Cryptocurrencies and Related Activities (SUNACRIP): It is the entity in charge of regulating all the activities related to cryptocurrencies in Venezuela. This institution must support equipment manufacturing and assembly projects, as well as the management of control systems, policies, and user registration.
  • Comprehensive Registry of Cryptoactive Services (RISEC): it is a web system attached to the SUNACRIP in which all users who carry out activities inherent to cryptocurrencies in Venezuela must be registered.

Despite the crisis that the country has experienced in recent years, the country’s natural energy wealth and the establishment of a regulation of cryptocurrency players greatly favor the development of mining companies in the country.

Moreover, just like El Salvador, bitcoin could also represent a geopolitical interest for the country as the country’s currency is not the most stable. 

If you are interested to know more about Bitcoin mining in Venezuela, in accordance with its standards, Ymir Mining offers its customers a 100% green turnkey hosting service, in colocation, in secure premises (24/7 video surveillance) and with an on-site maintenance team.