Proposed ban on bitcoin mining in Paraguay due to power problems.

[NikeFit_7777]

A ban on BTC mining has been proposed in Paraguay due to electricity problems. Under the proposed law, the ban would not only apply to bitcoin mining, but critics say it could also lead to a ban on cryptocurrency betting and even the use of cryptocurrency wallets.

The proposed bill would require the ban to be in effect for either 180 days or until the appropriate legal framework is in place and Paraguay's National Electricity Authority (ANDE) can provide sufficient infrastructure to support the energy-intensive needs of cryptomining without jeopardizing the rest of the grid.

The broad language of the bill could also inadvertently lead to the prohibition of activities such as cryptocurrency steaking, which involves the creation of virtual assets, as well as prohibit the mere storage of digital assets in a wallet, which is effectively an act of cryptocurrency preservation.

Source: https://decrypt.co/224880/bitcoin-mining-ban-paraguay-power-grid

[ABCbits]

It's clear government looking for excuse to ban cryptocurrency. Staking only use electricity as much as average server, while using Bitcoin wallet have negligible electricity usage. The news also state the bills proposed due to illegal miner stealing electricity, so they should have asked police and other agency to allocate more resource to arrest them instead. I only can hope this bill won't be passed.

[joniboini]

Staking only use electricity as much as average server, while using Bitcoin wallet have negligible electricity usage. The news also state the bills proposed due to illegal miner stealing electricity, so they should have asked police and other agency to allocate more resource to arrest them instead. I only can hope this bill won't be passed.

Some analysts suggest that the article's goal is specifically about illegal mining, but the wording is too broad and will cause more harm instead of tackling the issue. I read that a protest is already happening. If the government intends to avoid energy issues I believe some ridiculous parts such as using a wallet will not be outlawed. It is silly and probably impossible to check unless they want to interrogate everyone blindly. Someone can easily hide their wallets and feign ignorance. CMIIW.

[ABCbits]

Staking only use electricity as much as average server, while using Bitcoin wallet have negligible electricity usage. The news also state the bills proposed due to illegal miner stealing electricity, so they should have asked police and other agency to allocate more resource to arrest them instead. I only can hope this bill won't be passed.

Some analysts suggest that the article's goal is specifically about illegal mining, but the wording is too broad and will cause more harm instead of tackling the issue. I read that a protest is already happening.

But unless the one who write it is stupid, that person should know impact of the written bill proposal.

If the government intends to avoid energy issues I believe some ridiculous parts such as using a wallet will not be outlawed. It is silly and probably impossible to check unless they want to interrogate everyone blindly. Someone can easily hide their wallets and feign ignorance. CMIIW.

I agree, although theorically government could ask data from CEX and use it go after certain people.

[Stompix]

The news also state the bills proposed due to illegal miner stealing electricity, so they should have asked police and other agency to allocate more resource to arrest them instead. I only can hope this bill won't be passed.

It's more complex than that!
You have the energy to spare and you need to know what you're going to do with it and what are the returns for it.
Sell it at a discount in bulk to a neighbor to keep them friendly ? Sell it to miners and then do the complicated math of what are you getting back from it?

The problem was always capacity, same as in NY (state, not city), tons of cheap energy but when all that was brought up it stopped being cheap for the rest, same with miners, if they get power directly from the dam and they buy in bulk you're going to have the population asking why do they pay double when these pay half and generate almost no taxes?

You do realize there is a pattern here, right? Everyone cheers at first when miners come and buy the excess power only to see that one year later there is no excess power, you're forced into long-term contracts for cheap and you end up price electricity, angry citizens, and barely and barely any employment or taxes.
This will happen and continue to happen everywhere where miners migrate because of cheap electricity, China, Kazakhstan, Iran, Norway, USA, and Paraguay, you will see even people in Salvador getting angry if they experience shortages if any miners move there.

It's business, and like every business, you can't have it all!

[Findingnemo]

This will happen and continue to happen everywhere where miners migrate because of cheap electricity, China, Kazakhstan, Iran, Norway, USA, and Paraguay, you will see even people in Salvador getting angry if they experience shortages if any miners move there.

It's business, and like every business, you can't have it all!

The usage of electricity should come under the commercial/industrial tariff rates to avoid all these and if that happens then people can't blame the miners for enjoying the electricity for cheaper bills and that's fair too since miners are making decent profits when the bull run kicks in.

But banning the usage of cryptocurrency seems pointless and its irrelevant to the electricity consumption.

[ABCbits]

The news also state the bills proposed due to illegal miner stealing electricity, so they should have asked police and other agency to allocate more resource to arrest them instead. I only can hope this bill won't be passed.

It's more complex than that!
You have the energy to spare and you need to know what you're going to do with it and what are the returns for it.
Sell it at a discount in bulk to a neighbor to keep them friendly ? Sell it to miners and then do the complicated math of what are you getting back from it?

The problem was always capacity, same as in NY (state, not city), tons of cheap energy but when all that was brought up it stopped being cheap for the rest, same with miners, if they get power directly from the dam and they buy in bulk you're going to have the population asking why do they pay double when these pay half and generate almost no taxes?

You do realize there is a pattern here, right? Everyone cheers at first when miners come and buy the excess power only to see that one year later there is no excess power, you're forced into long-term contracts for cheap and you end up price electricity, angry citizens, and barely and barely any employment or taxes.
This will happen and continue to happen everywhere where miners migrate because of cheap electricity, China, Kazakhstan, Iran, Norway, USA, and Paraguay, you will see even people in Salvador getting angry if they experience shortages if any miners move there.

It's business, and like every business, you can't have it all!

Yeah, i'm aware of electricity production and demand fluctuation which affect electricity price. But do you imply that this bill proposal meant to suppress anger of regular citizen who pay at higher electricity price?

[Stompix]

Yeah, i'm aware of electricity production and demand fluctuation which affect electricity price. But do you imply that this bill proposal meant to suppress anger of regular citizen who pay at higher electricity price?

Yup, as the government some accuse of now having something against crypto where the ones letting crypto miners in, they issued licenses, as yeah there are licensed miners in Paraguay, they even made all the regulations to include the aspect of mining a business from employment to taxes, so they didn't have anything really against it, till the miners begin munching on more energy than everyone thought possible.

It's the same thing that happens with everything in the world economy
- let's bring tourists to the island, oh no we have too many tourists we need to get rid of hem
- let's bring industry to this area, oh no, the pollution, the traffic, let's stop
- we have a shitton of cheap energy, let's mine bitcoins, oh wait, where did all that spare energy go?

Everywhere is the same, Texas was fine with miners, excess energy, and nobody cared, then there was a crisis, miners shut down to conserve energy and they got paid for not consuming while at the same time people paid double, and that's when shit hit the fan!

[Rruchi man]

The proposed bill would require the ban to be in effect for either 180 days or until the appropriate legal framework is in place and Paraguay's National Electricity Authority (ANDE) can provide sufficient infrastructure to support the energy-intensive needs of cryptomining without jeopardizing the rest of the grid.

I understand the need for the government to propose a ban on mining because miners are humans too, and a common nature of human is our ability to take advantage of situations and opportunities when we have them. The government permitted electricity usage for miners, but it is now posing a risk, It is wise to slow down and try to know the exact number of miners consuming the electricity, so they can maintain the plan for them and discourage illegal miners out of the system.