With strong crackdowns on cryptocurrencies, especially Bitcoin Mining, considered the most popular digital currency in terms of market value, the Hashrate index, which specializes in monitoring mining operations, said that one of the smallest countries in Latin America, Paraguay, has the necessary conditions to become a hub for the next region bitcoin extraction.
The Mining Operations Tracking Index explained that there are many elements that support Paraguay’s occupation of the centre, including the abundance of clean, cheap hydro sources. Most of the energy comes from the Itaibo Dam, where Paraguayans are expected to consume only about 10% of the energy produced, and thus the remaining energy can be obtained to exploit Bitcoin mining operations in the future.
Despite this advantage, the Hashrate indicator has indicated that there are currently two different gaps that may affect Paraguay’s choice as a bitcoin encroachment destination. The first is the summer climate, with high temperatures and humidity, affecting the longevity of air-cooled mining devices.
The second is the government’s recent attacks on Bitcoin mining. The President of Paraguay criticized the Bitcoin mining industry while challenging the digital currency law passed by the country’s parliament last year. He said that the extraction of cryptocurrency is characterized by its high electricity consumption with intensive use of capital and little use of the hand-and warning that mining activity may have a negative impact on the country and may have to import energy from abroad if mining Bitcoin The activity continues intensively over the coming period.
