Power Rate Hikes Cause Major Problems For Bitcoin Mining Sector In Paraguay

start trading

There was a time when Paraguay was considered a safe haven for the cryptocurrency mining industry. Being exiled from China, several Bitcoin and altcoin mining firms moved to Paraguay.

They considered the country to be the best destination in terms of operational costs and freedom. Now it seems that the same country is turning into a nightmare for the mining industry.

Top Crypto Prices

Name Price24H (%)

>> Try the #1 AI Trading Robot - Click Here <<

Paraguay has changed its Stance

Initially, Paraguay showed that it had a lot of love and support for the crypto-mining industry. This is the reason why they welcome all major and mining crypto mining firms into their land with open arms.

Although it took time the crypto mining industry finally settled into the country and over the course of time, it found a strong footing.

start trading

Now that the mining industry has gotten used to the mining operations in Paraguay, the country has changed its stance against the sector.

The country now wants the crypto mining centers to pay almost double what they were paying to the government in the form of electricity prices.

The Government of Paraguay has imposed a new rule over the crypto-mining industry in the country. Almost every crypto mining firm is seen complaining about the change introduced by the government.

They are unhappy about the price hikes that the government has introduced and they are specifically for the cryptocurrency mining industry.

Statement by Nano Grijalba

Braiins Mining’s business developer recently shared a report pertaining to the electricity price hikes introduced by the government.

He claimed that the government has increased the electricity costs for the crypto-mining sector by 50%. In some cases, the hikes are more than 50%, which is very cruel to the mining industry.

Grijalba claimed that the hikes have been introduced for the crypto mining sector only, which is no less than discrimination.

He revealed that the government has adopted a narrative that the crypto-mining industry is not producing many jobs. Therefore, they have decided to impose higher charges and costs for the industry.

He fully criticized and condemned the decision made by the government of Paraguay and registered his protest against the move.

More Claims from Grijalba

While criticizing the decisions made by the Paraguay Government, Grijalba also asked everyone to put their attention to the environmental concerns.

He revealed that over the course of time, the Bitcoin and altcoin mining industry has become a clean industry. Still, they are the ones paying high hike prices for electricity.

On the other hand, there are industries that are responsible for very high emissions but they are running their operations unnoticed.

Instead, these industries are paying very low fees, which is a major question mark for the Paraguay Government.

He stressed that governments must increase their support for the industries that are clean and are striving for even cleaner operations. For now, they are facing discrimination at the hands of the Paraguay Government.

Hosting Services are threatened

Grijalba also shared that the self-mining operations are not the only activities carried out by the mining businesses in Paraguay. They are also involved in offering hosting services to users from around the world.

The users make investments and the mining firms mine crypto on their behalf through their centers. As the mining costs are rising with the electricity price hikes, they will have no choice but to increase charges/fees for the users.

If that happens, the users will start looking for other platforms offering the same services. There are multiple hosting services offering mining facilities to users from around the world.

If the worst thing happens, the users will go to such platforms, leaving the Paraguay-based mining firms with their self-mining operations.

This would have a huge impact on their mining operations and may force many mining firms to shut down their operations.

start trading

Leave a Reply

Your email address will not be published. Required fields are marked *