Paraguay may become the new capital of BTC-mining

The small Latin American country is moving toward leadership in cryptocurrency mining. 

The country’s BTC mining capacity reaches 100-125 mW, which is equivalent to a share of 1.45% of the global hash rate according to the Hashrate Index. Paraguay is home to the Itaipu Dam, which generates 14 gigawatts and has been providing electricity not only to Paraguay but also to Brazil and Argentina since May 1984. It is surpassed only by the Three Gorges Dam in China. 

Nevertheless, climate can be a barrier to the spread of mining. Temperatures between November and March often rise above 35 C, and the average annual humidity reaches 70%. 

All this combined makes it impossible to operate air-cooled miners. Moreover, high humidity destroys important parts of the devices and shortens their service life. 

Interest in mining in the country is increasing amid the high level of bitcoin adoption. Difficulties with cooling asic miners in difficult conditions can be solved by a competent technological approach, as is done, for example, in Texas, where it is also very hot and humid in the summer. 

As a reminder, the difficulty of bitcoin mining regularly increases and updates the historical maximum.