Cryptocurrency Mining More Expensive in Argentina Due to Profitability

Cryptocurrency miners are now searching for other countries to continue their operations due to China’s clampdown on mining. Promises of lower costs have led some of these miners to Argentina.

Nevertheless, the Argentinian government has now applied new rates for cryptocurrency miners, particularly in the province of Tierra del Fuego.

These new rates were published and announced in resolution 40/2022 by Argentina’s Energy Secretary of the Ministry of Economy. The resolution seeks to eliminate energy government subsidies for cryptocurrency mining energy usage. The new rates have made mining in Argentina four times more expensive than before.

The resolution further implies that miners’ hourly and seasonal energy is more intense and constant. As a result, cryptocurrency mining “presents challenges to the infrastructure of the concession area to which they are connected.”

Additionally, the resolution states that cryptocurrency miners must start paying energy prices “equivalent to the cost of supply” given that the activity is profitable and payment is available. It further claims the unjustness of miners paying the same subsidized price that residential users pay.

Resolution 40/2022 directly affects cryptocurrency miners in Tierra del Fuego, which is known for its cold climate. Said climate makes it ideal for miners who need to regulate their mining equipment’s temperatures.

In other news, Irkutsk Oblast, a federal region in Russia, is struggling with the increase in Bitcoin mining energy demand. Apparently, the area faces challenges in sustaining energy stability due to newly-established mining activities.

Apart from challenges presented by energy prices, cryptocurrency miners are likewise struggling due to natural occurrences. For instance, a miner in Texas had to shut down 99% of operations in anticipation of a rise in energy demand due to a winter storm to decrease the pressure on the state’s power grid.