The Venezuelan government has joined the list of countries that have frowned on crypto mining due to its hefty electricity demands.
According to a local news outlet, Venezuela’s Ministry of Electric Power has unveiled plans to disconnect cryptocurrency mining farms from the national grid. The move aims to regulate excessive energy consumption and guarantee a stable power supply for the population.
This move follows a recent crackdown involving the confiscation of 2,000 cryptocurrency mining devices in the city of Maracay as part of an anti-corruption initiative.
So Venezuela has become one of the countries that is banning cryptocurrency mining, along with China and Kazakhstan. And I think we should understand that the reason for this is that Venezuela has a real, big problem with its power supply though it is supposed to be so rich in oil and has been one of the top exporting gas supplier for the world. Due to economic mismanagement, things spiraled to its gloomy situation right now, years after the death of Hugo Chávez. This move by Venezuela can mean opportunity for other Latin countries willing to take mining business into their land.
now that the Venezuelan ban it, I expect some miners to go underground to continue their mining activity.If you're a miner in Venezuela, this new development will not be easily acceptable to you, but I will not advise you to go against the government and try to do your mining activities illegally. If it is possible, I advise that you relocate out of the country if you must continue your activities because if you are caught mining bitcoin in the country even after the government has declared it illegal, your equipment will be confiscated, and you may face serious charges.
Due to economic mismanagement, things spiraled to its gloomy situation right now, years after the death of Hugo Chávez. This move by Venezuela can mean opportunity for other Latin countries willing to take mining business into their land.Venezuela was considered a haven for BTC and every other crypto miner as due to the cheap electricity there, but some bad actors doing illicit activities (corruption) now have eliminated a source of lot of innocent people who were doing nothing wrong. I mean 2000 devices is not a big deal that you (authorities) planned to ban it. They should impose some taxes considering the amount of devices one owns, or the profit one makes. I mean we will call it progressive tax I think.
I thought that Venezuela has a lot of oil and oil reserves and it can fuel their electric grid for a long time. So why they have problems with electricity though? I'm no expert, but I don't understand why a country with a lot of oil is suffering from lack of electricity.
now that the Venezuelan ban it, I expect some miners to go underground to continue their mining activity.If you're a miner in Venezuela, this new development will not be easily acceptable to you, but I will not advise you to go against the government and try to do your mining activities illegally. If it is possible, I advise that you relocate out of the country if you must continue your activities because if you are caught mining bitcoin in the country even after the government has declared it illegal, your equipment will be confiscated, and you may face serious charges.
I thought that Venezuela has a lot of oil and oil reserves and it can fuel their electric grid for a long time. So why they have problems with electricity though?
The reason why the country is so crippled economically is because it has no way to process any of those oil reserves and sell them or convert them into electricity on a large scale.
You can blame US sanctions for that.
Also that explains why Venezuela president has wanted to invade some neighboring countries like Guyana that have lots of oil reserves, to get access to liquid assets that can be sold easily for case.
Yup, because not only do they have huge oil reserves but they also have a lot of socialism.
And how history has shown us a hundred times already you can have everything in this world, no matter how wealthy you are socialism will ruin you.
~snip~
I thought that Venezuela has a lot of oil and oil reserves and it can fuel their electric grid for a long time. So why they have problems with electricity though? I'm no expert, but I don't understand why a country with a lot of oil is suffering from lack of electricity.
The reason why the country is so crippled economically is because it has no way to process any of those oil reserves and sell them or convert them into electricity on a large scale.
You can blame US sanctions for that.
Also that explains why Venezuela president has wanted to invade some neighboring countries like Guyana that have lots of oil reserves, to get access to liquid assets that can be sold easily for case.