Fun

Argentinian Government Inquires About Energy Bitcoin Mining Companies Use Amidst Power Cuts

News Feed - 2022-01-03 10:01:20

Argentinian Government Inquires About Energy Bitcoin Mining Companies Use Amidst Power Cuts


The Argentinian government is starting to inquire about the power consumption of bitcoin mining companies after some provinces in the country faced power cuts during the last days of 2021. Cammesa, the state-owned power wholesaler, has sent a memo to big power consumers to reveal whether they are mining cryptocurrency. If so, the companies should reveal their actual power consumption so a price hike can be coordinated, and they will need to invest in power infrastructure. Argentinian Government Sets Sights on Bitcoin Mining


The Argentinian government is trying to pinpoint the exact power usage that bitcoin miners require from the national power grid, in order to take measures to improve the current power crisis the country is facing. Cammesa, the state-owned energy wholesaler, has sent a letter to all registered large-scale consumers, requesting they report the energy consumption of possible mining operations they may host, including the power consumed by what the company calls the “server group,” the refrigeration equipment to cool the miners, and other associated equipment.


According to local media reports, the Argentinian government — via the Undersecretary of Electric Energy — could be planning to take action to get miners to pay more for this energy, launching a new tariff scheme and making cryptocurrency miners invest in the power system directly. This with the objecting of relieving the stress these operations are said to be causing the national grid, which in some cases has faced power cuts affecting more than 80,000 citizens and provoking protests. Covert Mining Operations


Local cryptocurrency experts explained some companies have migrated to offer their space to host cryptocurrency mining operations, something that has affected the grid negatively. An unnamed source disclosed that these businesses were common and that there are more than 200 farms of this kind in the country, with at least half of them operating in Buenos Aires, the Argentinian capital.


The reason for the covert operations popping up is said to be the profitability investors can achieve by avoiding taxes. Doing things covertly can speed up return on investment (ROI) times for mining investors, who can reportedly recover their investment in six months, compared to ROI times of up to 18 months for other operations.


Bitcoin mining companies have been eyeing Argentina due to its affordable power costs. One of these groups is Bitfarms, which is already building a mega-mining complex in a partnership with a private third party that will ostensibly provide the power without impairing the national grid. Tags in this story Argentina, Bitcoin, cammesa, cover mining, covert, Energy, mining, power, power cuts, Protests


What do you think about the new measures the Argentinian government is planning to take regarding bitcoin mining? 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 rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved. Smart TVs and NFTs Collide: Samsung Introduces World’s First Television-Based NFT Platform NEWS | 3 hours ago Presidential Candidate in South Korea to Raise Funds in Cryptocurrency, Issue NFTs   NEWS | 12 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleAscendEX Lists FNDZ Next articleErtha to Prime List Huobi on January 4th Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItBank of Russia to Collect Data on Crypto-Related Transactions Between Individuals


The Central Bank of Russia (CBR) plans to obtain information from commercial banks pertaining to some money transfers between private individuals, including clients trading cryptocurrency. The measure is likely to affect online crypto exchangers which the regulator accuses of conducting ... read more.Crypto Scammer Arrested in Bangkok After Fleeing With 500 Million Baht Crypto Exchange Binance Receives Approval in Bahrain — Plans to Become Regulated, Centralized Worldwide Bank of Russia Wants to Restrict Crypto Investments by Blocking Card Payments, Report Reveals India"s Swadeshi Jagran Manch Calls for Outright Ban on Cryptocurrency

News Feed

Ezra Reguerra10 hours agoRipple joins BIS cross-border payments task forceThe task force is a part of the Bank of International Settlements’ Committee on Payments and Market Infrastructure.2540 Total views16 Total shar
Bitcoin’s Hashrate Taps New Lifetime High, BTC Price 20% Above Production Cost, Difficulty Nears ATH
Bitcoin"s Hashrate Taps New Lifetime High, BTC Price 20% Above Production Cost, Difficulty Nears ATH Bitcoin’s hashrate has been riding high again as the processing power ta
Biggest Movers: XRP Nears 5-Month High to Start the Week, Despite Crypto Market Consolidation
Biggest Movers: XRP Nears 5-Month High to Start the Week, Despite Crypto Market Consolidation Xrp moved back towards a five-month high on Monday, as prices surged for a third stra
US Crypto Lawsuits Reach All-Time High With 42% Increase in 2022; SEC Cases Dominate Legal Battles
US Crypto Lawsuits Reach All-Time High With 42% Increase in 2022; SEC Cases Dominate Legal Battles A new study on digital currency-related lawsuits since 2018 shows a 42% increase
Bitcoin price loses ground as TON, PEPE, KAS and JASMY catch traders’ attention
Rakesh Upadhyay15 hours agoBitcoin price loses ground as TON, PEPE, KAS and JASMY catch traders’ attentionTON, PEPE, KAS, and JASMY could attract buying if bears fail to pin Bitcoin below $64,602.6709 Total views34 Tot
Crypto Firm Owners Plead Guilty to Tax Evasion, Face up to 5 Years in Prison
Crypto Firm Owners Plead Guilty to Tax Evasion, Face up to 5 Years in Prison The owners of a cryptocurrency firm that raised approximately $24 million from more than 13,000 investo
Russian Accused of Laundering Cryptocurrency From Ransomware Attacks Extradited to US
Russian Accused of Laundering Cryptocurrency From Ransomware Attacks Extradited to US A Russian national suspected of laundering ransomware payments in cryptocurrency on behalf of
Metaverse Company Condense Raises $4.5 Million to Accelerate VR Streaming Adoption
Metaverse Company Condense Raises $4.5 Million to Accelerate VR Streaming Adoption Condense, a Bristol, England-based metaverse company that produces technology to allow the stream
Biggest Movers: TRX Hits 4-Week High, MKR Remains Close to 2-Month Peak
Biggest Movers: TRX Hits 4-Week High, MKR Remains Close to 2-Month Peak Tron rose to a one-month high in today’s session, hitting a key resistance point in the process. The
Bitcoin Miners May Get Another Break This Week as Network’s Mining Difficulty Is Expected to Drop
Bitcoin Miners May Get Another Break This Week as Network"s Mining Difficulty Is Expected to Drop Bitcoin miners may catch another break this week as the network’s mining di
Rakesh Upadhyay5 hours agoWill Bitcoin ‘Uptober’ bring gains for MKR, AAVE, RUNE and INJ?Bitcoin tends to rally in October, possibly opening the door for MKR, AAVE, RUNE, INJ and other altcoins.1589 Total views8 Tota
Opensea Acquires Dharma Labs, Co-Founder Is Named New CTO
Opensea Acquires Dharma Labs, Co-Founder Is Named New CTO Opensea, one of the biggest NFT marketplaces globally, recently announced it is acquiring Dharma Labs. The price is believ