Cryptocurrency mining in Cuba Suspended for some time due to power crisis on Caribbean islandRecurring power outages in some parts of Cuba have made Cuba’s mining equipment unsustainable, and in some cases even impossible.
Many Cubans lost thousands of dollars invested in procuring cryptocurrency mining equipment and graphics cards. Constant power outages continue to disrupt mining hardware and hamper potential revenue for operators.
Cubans have reportedly experienced power outages lasting more than 10 hours a day. In addition, weather phenomena such as Hurricane He Ian have rendered the country’s power plants less than optimal.
Cuba’s power grid is unsuitable for cryptocurrency mining
Crypto has secured a notable level of functionality in Cuba. However, disruptions in electricity services have squeezed the profitability of this particular activity in the country. Cryptocurrency mining was once considered a smart investment for Cubans, but due to the current state of Cuba’s power grid, citizens are constantly looking for ways to solve this problem.
A small cryptocurrency miner called Raydel Gonzalez, who built his own mining rig, spoke to local news site CubaNet to explain the challenges and difficulties miners have to go through in the country.
“I, like many others, were heavily invested in cryptocurrency mining equipment that wasn’t cheap,” Gonzalez said. “Cryptocurrency mining in Cuba is unsustainable due to the emergence of blackouts.”
Gonzalez isn’t the only one on this boat. Other miners, such as Eduardo Gomez, bought the power plant and believed the move would keep them in operation. In addition, gas is scarce, compounding the problem of businesses operating off-grid electricity being a sustainable source of supply. Eduardo Gomez said he is struggling to make his return on an investment worth $5,000.
The Internet is also affected by electrical fluctuations
Cuban miners continue to look for other options to get around their country’s power problems. Another major resource that has been hit hard is the Internet. The internet is an integral part of cryptocurrency mining, and it appears to have been affected by power outages and fuel shortages in Cuba as the plant ceased to function.
The miners who kept the equipment running ran into another problem as a result of the volatility. His last resort, one of the most dangerous ways to make ends meet for miners, is to move the equipment to the site, because the state workplace has a power plant.
This could have other consequences, such as loss of jobs and mining hardware, in addition to the threat of more serious sanctions. Many miners sell mining equipment well below cost to cover at least part of their investment.
Young Cuban entrepreneurs used cryptocurrency mining as a way to acquire these digital assets. This allows miners to enjoy benefits such as paying for online purchases and services abroad and remittances.
