Paraguay becomes the best Bitcoin mining center in Latam according to Insight Group – Mining Bitcoin News

Paraguay, one of the smallest countries in Latam, has the conditions needed to become the next Bitcoin mining center in the region, according to mining insight group Hashrate Index. The company notes that there are many elements in Paraguay’s favor, including the abundance of clean hydropower sources. However, the stance that the government has taken against cryptocurrency mining may slow down this growth process.

Paraguay has all the elements to become a Bitcoin mining powerhouse in Latam, according to Insight Group

Paraguay, a country not particularly known for its crypto connections, is now considered one of the most attractive destinations in Latam for bitcoin miners. According to mining insight company Hashrate Index, the country presents a number of advantages that could help it become one of the largest cryptocurrency hubs in the region.

The first advantage that Paraguay has over other countries in the area, and what made it an attractive location for miners after the Chinese mining exodus, is the abundance of clean, cheap hydropower, which can be used to build large bitcoin mining operations. Most of this power comes from the Itaipu Dam, and Paraguayans reportedly only consume about 10% of the power produced.

While most of this energy is exported to neighboring countries, it could be tapped to power large-scale mining operations in the future, according to the group.

Some disadvantages

Hashrate Index says that there are currently two distinct disadvantages to choosing Paraguay as a destination to set up a bitcoin mining operation. One is the climate in summer, which can reach high temperatures and high humidity, which affects the lifespan of air-cooled mining rigs.

The second, and perhaps the most significant, has to do with the unfavorable perception the government has of Bitcoin mining activity. The president of Paraguay, Mario Abdo, criticized the industry in the decree used to veto the cryptocurrency law approved by the Paraguayan Congress last year.

Abdo stated that cryptocurrency mining was an activity “characterized by the high consumption of electrical energy, with intensive use of capital and little use of labor.” He also warned about the future of activity in the country, and the possibility of having to import power if the industry continues to grow in Paraguay.

This vision has led the national power company to punish the industry by applying a power tariff increase of over 50% in January, affecting already established miners in the country, reducing their profit margins and rendering them unable to provide hosting services for third parties.

What do you think about Paraguay and its potential future as a crypto mining hub in Latam? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price spike occurred during December 2017. He has a computer engineering background, lives in Venezuela and is influenced by the cryptocurrency boom on a social level, offering a different point of view on crypto success and how it helps the unbanked and underserved.

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