Recently, Paraguay appears to be providing Bitcoin miners with exactly what they require, and as a result, it has emerged as the newest country to which many miners are relocating.
China — No longer a powerhouse?
China’s aversion to cryptocurrency is well known, as is its goal to force the majority of cryptocurrency miners out of the country. While China has historically been a Bitcoin network powerhouse, providing a large portion of its hash power, the recent ban on miners has fuelled a migration.
While some miners selected Kazakhstan and the United States of America to establish themselves, there is another country that miners are increasingly going to.
Will Paraguay come to the rescue?
Itaip and Yacyretá, two of the world’s largest hydroelectric dams, are located in Paraguay. In reality, hydroelectric power accounts for 100 percent of its electrical generation. Furthermore, the country is responsible for producing the most renewable electricity per capita in the world.
The dams generate over 8,500 MW of power, of which Paraguay consumes less than half and shares the remainder with Argentina and Brazil, among others.
This surplus may persuade miners to prefer Paraguay over other locations across the world. This attitude is shared by Bentez Rickmann, CEO of Paraguay-based mining firm Digital Assets S.A.
The executive stated,
“6,000 MW were turned off in China, which corresponds to the energy surplus of 5,500 MW in Paraguay. It is really appealing to them.”
The path ahead
At the moment, the country is inviting eight Chinese Bitcoin mining companies. Following this, 500,00 machines will be installed throughout the country. He claimed that one mining firm alone will build up 90,000 Bitcoin mining rigs. Miners and others may find some relief in mining Bitcoin with renewable energy in Paraguay, given the surplus in electricity generation.
On the legislative front, lawmakers in the country are also working on a plan to regulate miners and attract foreign investment.
According to Rickmann, an advisor on the aforementioned law, such efforts have been fruitful.
“The bill is intended to attract significant mining firms to Paraguay. In China, 6,000 MW were turned off, which corresponds to the energy excess in Paraguay, which is 5,500 MW. It appeals to them greatly. I have a list of corporations from all around the world who are interested in coming to Paraguay.”
This would be a significant advance in the future. Especially when Bitcoin hash power suffered greatly during the Chinese exodus.
According to Crypto Parrot data, mining revenue has increased by 179.4 percent in the last 30 days. Miners made a lot of money on the 26th and 27th of July, earning $36.49 million and $13.06 million, respectively. Furthermore, cumulative earnings for the last 30 days were reported to be $841 million.