Argentina promotes large-scale Bitcoin mining
- This year, 27,000 miners will be set up in Cordoba, the southern part of the country.
- Bitfarms plans to create BTC farms with state-of-the-art equipment in Argentina and Paraguay.
- If the project is realized as planned, both countries will become South American mining powers.
Bitfarm, the developer of the Bitcoin Farm project in Argentina and Paraguay, announced the installation of thousands of mining equipment during the presentation of its financial report for the fourth quarter of 2021 this week.
Both countries have been selected by the company to lead large-scale BTC mining projects in the coming years. In Paraguay, the installation of a Bitcoin farm powered by hydroelectric power began in January.
While in Argentina, a facility has been built to accommodate approximately 27,500 Whatsminer M30S. It is currently the most powerful BTC mining device in the specialized hardware market.
Manufactured by the manufacturer MicroBT, this device has a processing capacity of up to 88 tera-hash / sec (TH / s). The company plans to install 27,500 computers in Argentina, adding 2.42 Exa Hash (EH / s) of power per second.
Increased mining capacity installed
In Argentina, Bitfarm aims to reach approximately 1% of the total Bitcoin hash rate (206 EH / s) worldwide. Hash rates represent the power of the network to solve proof-of-work puzzles, identify cryptocurrency transactions, and ensure network security from potential attackers. In exchange, BTC miners will receive a reward.
Argentina is expected to become one of the countries with the highest Bitcoin mining capacity by the end of the year. The University of Cambridge reports that the country currently offers a BTC hash rate of 0.05%.
Bitfarms is currently building two large mining farms in the Cordoba city of Rio Quart. The two farms will be ready to go live in the last quarter of this year and will consume 100 MW of electricity.
The other two farms that consume the remaining contract energy have not yet been built, but the company has not yet revealed their location.
On the flip side
- The International Monetary Fund (IMF) has requested the Argentine government to take steps to prevent the use of BTC and other cryptocurrencies as part of a debt agreement recently signed with a financial institution.
- In some Argentine states, regulations and taxes on Bitcoin have been tightened.
Another risk is that excessive use of hydroelectric energy in Bitcoin mining can lead to power outages in Cordoba. However, Bitfarms has signed an eight-year contract with a private supplier to supply the energy it derives from.
The company will have free access to 210 megawatts (MW) of power capacity. This electricity is equivalent to all the electricity consumed by about 100 Argentine households in a year.
Why you need to care
- Mining companies are looking for friendly areas and regulations for the establishment of large mining farms. Argentina and Paraguay have so far embraced the industry. But at least in Argentina, this can change.
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