Bitcoin by its nature is affordable to anyone with an internet, but mining is a more problematic issue. To mine cryptocurrencies, you need to meet a series of requirements that are denied to citizens in many countries of the world.
Leaving aside some government obstacles, such as taxes, or the laws that make the activity illegal, there is the issue of energy. In fact, there are many countries in which virtual mining is not expressly prohibited. However, the service costs are so high that it seems that way.
In this way, citizens who want to access Bitcoin, not through exchanges, but by producing them, lack that right. What can be done in countries like Costa Rica or Guatemala, where the electricity bill is the highest in Latin America to access cryptocurrency mining?
Is Bitcoin Mining Possible In Countries With High Energy Costs?
As said, accessing Bitcoin is possible anywhere in the world without major problems, but mining requires a bit more attention. In many places, particularly in Latin America, there are nations where it is extremely difficult to become a miner.
Countries like Argentina, meanwhile, to think that the industrial electricity bill does not reach the scandalous levels of Guatemala, mining is also uphill. In this sense, it is not the same to buy Bitcoin on Binance or LocalBitcoin, than to generate them on your own machines.
When connecting an ASIC equipment to generate Bitcoin or other cryptocurrencies, the meter begins to count. If to this is added the high cost of the mining machines, it is possible to reach the certainty that the amount of money generated by the activity is not enough to cover the electrical costs, less for a quick return on the investment.
At this point, one wonders if there is any way out for people who aspire to be miners. The answer is yes, there are two ways out. One is found in companies that mine remotely and the other in more efficient equipment.
Remote mining companies
There are a large number of Bitcoin mining companies, which lend their hashing power for a certain time to their clients. In other words, in exchange for the purchase of a plan or package, you will mine with a certain hash power, which will be rented to you by the company. What those machines generate in the contract time will go to your e-wallet.
To look at it from another angle, let’s take the example of an entrepreneur who sets up his farm in countries with low electricity costs (for example, Venezuela). That person, through a package of plans, offers part of the hash of those machines to customers in countries with expensive electricity, (for example, Uruguay).
In this way, the former exploits the free electricity in his country for his benefit. Meanwhile, the latter, you have the opportunity to be a part of the Bitcoin mining business without worrying about electricity bills.
It sounds great, but the problem is that there are many of these companies that are fraudulent. Dozens of cases can be counted of customer scams by these fake farmers.
Keep your eyes open
The recommendation is not to move away from remote mining companies, since these are often the only hope of accessing the business. However, what is recommended is to be on the lookout for fake companies that seek to scam you.
For this, a prior investigation of the selected company must be carried out. Before investing, you must be sure that it has a valid commercial registration and all the relevant legality. In the same way, the most advisable thing is to go to the most famous because they are the ones with the highest confidence index.
Bitcoin mining is a profitable business. The duty of people who aspire to enter it in countries where energy is very expensive. It’s doing your own research and not investing your money lightly.
Is it possible to have good results?
During the COVID-19 pandemic, Bitcoin mining has been one of the fastest growing businesses in the world. The results have been positive for thousands of people. Now, do people who access companies that rent their computing power have a chance to make good profits? Or rather why, if mining is so profitable, those firms rent the hashing power instead of leaving it to themselves?
These are valid questions that must be answered by the companies that provide the service. However, it must be remembered that the main winners with this type of business are the companies themselves. But, on the other hand, customers also carry great possibilities.
Imagine for a moment that you purchased a Bitcoin mining plan from a reputable and trusted company prior to extensive research. The plan cost 250 USD and you will be entitled to 16 TH / s for one year. If the value of Bitcoin rises, as it is now, your profits will be much higher and you will get a very fast return on your investment.
It can be said that if your intention is to be a part of the Bitcoin mining business, don’t stop. But, we insist, you should take the research stage very seriously before investing.
The benefits of the most efficient machines
Another important aspect related to Bitcoin mining in countries with high cost of electricity bills, is efficiency. Some machines, especially the newer ones, have a very high level of efficiency, that is, with a very high hash power, their energy consumption is increasingly lower.
The latter represents a relief, since potential miners could buy this equipment and, despite the high cost of the electricity bill, its computing power is so high that it makes the activity profitable.
In this case, some variables such as the initial investment in wiring, transformers, and so on, must be weighed. In addition, the accommodation site for equipment and maintenance personnel. To this can be added the high cost of the equipment themselves. In simple words, costs do not refer only to electricity, although this is the most important.
Data to take into consideration
- In many Latin American countries, the electricity bill is so expensive, that it is almost impossible to access Bitcoin mining.
- There are two ways to become a miner in nations like Uruguay and even Argentina.
- One of them is buying high-efficiency equipment such as Bitmain’s S19 series. The other is by renting hash power from companies based in other countries where electricity is less expensive.
- Many of the companies that sell these mining plan packages are criminal and in the business of scamming customers.
- The recommendation is to keep your eyes open and, before investing, carry out an in-depth study of these firms.
This content is strictly informative and educational, under no circumstances should it be taken as a reference to make investment in any company.