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Home » “I’ll lose $300,000 if Bitcoin farm shuts down”

“I’ll lose $300,000 if Bitcoin farm shuts down”

Bitcoin miners would lose up to $300,000 a month for every shut down farm on Venezuelan territory. “Without a doubt, this is a serious issue, to the point where I feel like I’m paying a fine for the money someone else stole,” said Edward Machado, who used a fictitious name to confirm his identity protect against CriptoNoticias.

Have been Several bitcoin mining farms operating offline under license the regulator, which has been happening for 10 days when the government ordered the reorganization of the National Superintendency of Cryptoactives (Sunacrip).

Since then, an “in-depth investigation” into a plot to siphon off at least $3,000 million through parallel sales of Venezuelan oil has progressed.

Therefore, all bitcoin mining farms in the states of Carabobo, Lara and Bolívar remain off-grid, according to José Ángel Álvarez, president of the National Association of Cryptocurrencies (Asonacrip).

“This measure is arbitrary and goes against the interests of the private sector,” Álvarez added.

“Digital mining farms that are legal have employees, leaving them and their families with no income if they remain closed.” he showed on Twitter, a user identified himself as JoseRVelasquezM.

“In Venezuela, on average, a bitcoin mining farm has about 1,000 specialty ASICs, and each produces about $32 a month. So we would be talking about a plant that can produce about $300,000 a month,” explained José Ángel Álvarez.

Venezuela, a risk zone for bitcoin mining

Each Bitcoin mining farm operating in Venezuela has a different average profit depending on the amount of equipment they have in their facility as well as the type of ASIC they own.

However, Bitmain’s S9s are the most widespread in Venezuelan territory and although they are no longer the most profitable, they are still making profits due to the low cost of electrical energy consumed by miners in the country.

With these teams Sufficient income can be generated to cover the operating costsPay taxes and guarantee profitability, as highlighted in an article published in CriptoNoticias last year.

“However, digital mining has historically been a high-risk activity in Venezuela,” comments Bitcoin miner Julio Cárdenas, citing several factors including power and internet connection instability.

Many entrepreneurs have chosen to devote themselves to bitcoin mining because electricity is cheap in Venezuela, but the activity is not without risk. Spring: YouTube/DW Spanish.

In addition, miners in the country are exposed to the loss of equipment in possible seizures or due to extortion payments, which they must consider as part of the activity.

“And now, as if that weren’t enough, there’s an investigation by the regulator, forcing us to halt operations and still bear the costs incurred,” Cardenas added.

“Right now we’re waiting, waiting to see what happens,” said Carlos Moreno, who highlights favorable regulation for bitcoin mining possessed by the country in which it does not want radical changes.

Institutional lawlessness is rampant in the Bitcoin ecosystem

As part of the investigation into the corruption plot in the state-owned Petróleos de Venezuela (PDVSA) and Sunacrip, the Republic’s Attorney General, Tarek William Saab, presented the confiscated assets of officials and businessmen at a press conference.

The recordings show the Bitcoin mining farm seizedamong the properties allegedly under the power of those involved in the corruption plot known as PDVSA-Cripto.

The prosecutor said the properties were spread across 10 different sheds and what was seen in the pictures corresponded to a small portion of what was recovered, without giving further details.

Video footage of a bitcoin farm being seized as part of anti-corruption efforts in Venezuela.
Republican Attorney Tarek William Saab video showed the seizure of a bitcoin farm as part of Venezuela’s anti-corruption drive. Spring: YouTube/Luigino Bracci.

Exactly the lack of details and official information is something that worries bitcoin miners. But other organizations have also decided in this matter.

“It is concerning that despite the seriousness of the events referred to by the National Anti-Corruption Police and repeated in the State Department’s announcements, the public information is so scarce,” a report said release distributed by the civil association Transparencia Venezuela.

On the other hand, there was no official statement from the Sunacrip Restructuring Committee. CriptoNoticias sent a request for comment, which has not yet received a response.

A shutdown command that doesn’t know where it came from

Amid confiscations, corruption investigations and a lack of official information Uncertainty is creeping into the Venezuelan bitcoin ecosystem.

“The situation is complicated because some miners have been told by phone call that they will be unplugged while the investigation into corruption in Sunacrip is ongoing,” said José Ángel Álvarez.

He is concerned that callers are posing as Corpoelec officials, so the measure to shut down bitcoin mining farms is not yet registered in any office.

On the contrary, the closure of the mining operations was verbal and it is not known if it was actually a regulator order, Álvarez added.

As previously reported by CriptoNoticias, the closure of mining operations has become a shadow now hanging over the sector. In fact, there are bitcoin miners who see a bleak outlook for the next few months or more.

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