When you think of Argentina, you probably think of economic instability, inflation, or even a guy named Lionel Messi. But you would never imagine that Argentina could follow in El Salvador’s footsteps to become a growing crypto hub for miners. But why is Argentina doing this and why is the country slowly becoming a crypto hub for miners and investors?
Miners in Argentina benefit from the cheap subsidized electricity tariffs and although Argentina is a net importer of gas, consumers’ electricity bills are only around 2% to 3% of an average monthly income, which is an incentive to attract miners to the country.
“Even after Bitcoin’s price correction, the cost of electricity for anyone mining from their home is still a fraction of total sales.” said Nicolas Bourbon, who had experience mining digital currency from Buenos Aires.
Bitfarms is a publicly traded Bitcoin mining company that has announced that it will expand operations in Argentina from 60 megawatts to 210 megawatts. “Sufficient to support approximately 55,000 new generation miners who could generate sales of approximately $ 650 million.” This, in turn, will lower the break-even cost of mining, which is $ 7,500 in Canada and just $ 4125 in Argentina. With electricity accounting for up to 75% of the cost of mining, there’s nothing stopping Argentina from becoming a South American crypto powerhouse.
Argentina’s economy is the best brood Soil for the crypto world. Cryptocurrency is seen as a way for locals to hedge against cyclical economic crises, including repeated currency devaluations, defaults, hyperinflation and now a three-year recession made worse by the pandemic.
Also the return of exchange controls has in recent years Argentinians banned from buying dollars have even more incentives to mine digital tokens as demand for non-peso assets increases has the value of Bitcoin in the unofficial markets as of Sept. Cryptocurrency is also used to convert pesos into dollars, circumventing government restrictions through peer-to-peer transactions, with those transactions growing from under $ 200,000 in late 2019 to $ 600,000 last year.
The cryptocurrency has grown under the radar in Argentina, but it’s one of the hopes that locals see as a way to survive these troubled times. but Bitcoin and other crypto assets are more interesting from a financial perspective for investors who can make investments to save the Argentine economy, they also created massive hype that brought creativity and innovation with them. With the recently proposed bill allowing workers to be paid in cryptocurrency, Argentina once again has a very real opportunity to be at the forefront of the crypto world.
At Nagaya Technologies, we certainly believe that cryptocurrency could create opportunities that can be felt by everyone around the world. This has led us to develop the world’s first hybrid crypto asset called Nagaya Coin.
To learn more about Nagaya Technologies and our Nagaya Coin, you can find out more at www.nagaya.io
Or talk to us at t.me/nagayaofficial