Bitcoin Mining in Venezuela Persists Secretly Despite Government Ban

  • Sergey Maga
  • 10 July, 2024 20:23
Bitcoin Mining in Venezuela Persists Secretly Despite Government Ban

Secret Bitcoin mining continues in Venezuela despite a government ban, operating on a smaller scale. Local ASIC shops still sell mining equipment, enabling small-scale operations to hide their activities, according to Bitcoin.com.

After the government ordered all registered mining farms to shut down in May due to an energy crisis, many miners went underground. These clandestine operations, with relatively low energy consumption, can operate discreetly. Local mining equipment store managers confirmed that the market is still alive, catering to small miners who have adapted to the new restrictions. 

One anonymous miner, running a 60-miner operation in Caracas, shared insights on the profitability and risks of underground mining. He emphasized that careful planning and discreet locations are crucial for continuing operations without detection. Despite the government’s crackdown, underground miners have found ways to mitigate risks and maintain profitability.

Jesus Montilla, executive manager of Crypto Tools, highlighted the resilience of the small-scale mining community. He noted that the market for Bitcoin miners remains active, driven by individuals with smaller machines. This underground market has helped sustain the ecosystem, despite the broader restrictions.

However, the future of this underground mining remains uncertain. The inability to replace old miners with new equipment poses a long-term challenge. If authorities discover a mining operation, bribery might keep it running, but this is not a sustainable solution. 

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