Beautiful Virgin Islands

Wednesday, Aug 27, 2025

Bitcoin Mining Booms in Argentina due to Low Energy Cost and Slowing Economy

Bitcoin Mining Booms in Argentina due to Low Energy Cost and Slowing Economy

Low energy costs due to government subsidies, high inflation and restrictive capital controls have pushed (enabled?) residents of Argentina to mine bitcoin in their homes.

Bitcoin miners in Argentina are capitalizing of the country’s shrinking economy and its debased currency to harvest oversized returns, powered by cheap, government-subsidized energy.

“Even after BTC’s price correction, the cost of electricity for anyone mining from their house is still a fraction of the total revenue generated,” Nicolas Bourbon, who has experience mining bitcoin from Buenos Aires, told Bloomberg.

Miners are taking advantage on Argentina’s cheap residential electricity due to intense government subsidies that seek to win political points with voters.

Bourbon explained:

“The crypto that miners generate is typically sold at the parallel exchange rate, but the energy is paid for at a subsidized rate.”

“At the moment, revenues are very high.”

The bitcoin parallel exchange rate in the country is selling at a hefty premium, as Argentines have substantial currency restrictions imposed on them and desperately seek better stores of value than their fiat currency –– the peso. According to Bloomberg, bitcoin’s parallel exchange rate in the country traded at around $63,000 on Sunday, a 75% premium to the official rate of $36,000.

Apart from local Argentine homeowners, international mining firms are also taking action to benefit from the situation. Last month, Canada’s Bitfarms Ltd. secured a deal to draw 210 megawatts of power from an underused Argentinian natural gas plant, per Bloomberg.

“We were looking for places that have overbuilt their electrical generation systems,” Bitfarms President Geoffrey Morphy told Bloomberg. “Economic activity in Argentina is down, and power is not being fully utilized. So it was a win-win situation.”

Although electricity in Argentina is much cheaper than in its neighboring countries, the home mining trend is starting to pick up in South America. For example, in Brazil, bitcoin mining interest has reached a three-year high, according to data from Google Trends, local outlet Portal Do Bitcoin recently reported. Growing unemployment, a shrinking economy and a devalued currency since the pandemic breakout have left Brazilians seeking alternative income sources by mining bitcoin at home.

As a permissionless, government-agnostic, decentralized money, bitcoin is providing an interesting alternative to people under interventionist governments’ monetary policies globally.

Source: Bitcoin Mining Booms in Argentina due to Low Energy Cost and Slowing Economy – Fintechs.fi

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Spotify’s Strange Move: The Feature Nobody Asked For – Returns
Manhunt in Australia: Armed Anti-Government Suspect Kills Police Officers Sent to Arrest Him
China Launches World’s Most Powerful Neutrino Detector
How Beijing-Linked Networks Shape Elections in New York City
Ukrainian Refugee Iryna Zarutska Fled War To US, Stabbed To Death
Elon Musk Sues Apple and OpenAI Over Alleged App Store Monopoly
2 Australian Police Shot Dead In Encounter In Rural Victoria State
Vietnam Evacuates Hundreds of Thousands as Typhoon Kajiki Strikes; China’s Sanya Shuts Down
UK Government Delays Decision on China’s Proposed London Embassy Amid Concerns Over Redacted Plans
A 150-Year Tradition to Be Abolished? Uproar Over the Popular Central Park Attraction
A new faith called Robotheism claims artificial intelligence isn’t just smart but actually God itself
Deputy Prime Minister Angela Rayner Purchases Third Property Amid Housing Tax Reforms Debate
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Italian Facebook Group Sharing Intimate Images Without Consent Shut Down Amid Police Investigation
Dutch Foreign Minister Resigns Amid Deadlock Over Israel Sanctions
Trump and Allies Send Messages of Support to Ukraine on Independence Day Amid Ongoing Conflict
China Reels as Telegram Chat Group Shares Hidden-Camera Footage of Women and Children
Sam Nicoresti becomes first transgender comedian to win Edinburgh Comedy Award
Builders uncover historic human remains in Lancashire house renovation
Australia Wants to Tax Your Empty Bedrooms
MotoGP Cameraman Narrowly Avoids Pedro Acosta Crash at Hungarian Grand Prix
FBI Investigates John Bolton Over Classified Documents in High-Profile Raids
Report reveals OpenAI pitched national ChatGPT Plus subscription to UK ministers
Labour set to freeze income tax thresholds in long-term 'stealth' tax raid
Coca‑Cola explores sale of Costa coffee chain
Trial hears dog walker was chased and fatally stabbed by trio
Restaurateur resigns from government hospitality council over tax criticism
Spanish City funfair shut after serious ride injury
Suspected arson at Ilford restaurant leaves three in critical condition
Tottenham beat Manchester City to go top of Premier League
Bank holiday heatwave to hit 30°C before remnants of Hurricane Erin arrive
UK to deploy immigration advisers to West Africa to block fake visas
Nurse who raped woman continued working for a year despite police alert
Drought forces closures of England’s canal routes, canceling boat holidays
Sweet tooth scents: food-inspired perfumes surge as weight-loss drugs suppress appetites
Experts warn Britain dangerously reliant on imported food
Family of Notting Hill Carnival murder victim call event unmanageable
Bunkers, Billions and Apocalypse: The Secret Compounds of Zuckerberg and the Tech Giants
Ukraine Declares De Facto War on Hungary and Slovakia with Terror Drone Strikes on Their Gas Lifeline
Animated K-pop Musical ‘KPop Demon Hunters’ Becomes Netflix’s Most-Watched Original Animated Film
New York Appeals Court Voids Nearly $500 Million Civil Fraud Penalty Against Trump While Upholding Fraud Liability
Elon Musk tweeted, “Europe is dying”
Far-Right Activist Convicted of Incitement Changes Gender and Demands: "Send Me to a Women’s Prison" | The Storm in Germany
Hungary Criticizes Ukraine: "Violating Our Sovereignty"
Will this be the first country to return to negative interest rates?
Child-free hotels spark controversy
North Korea is where this 95-year-old wants to die. South Korea won’t let him go. Is this our ally or a human rights enemy?
Hong Kong Launches Regulatory Regime and Trials for HKD-Backed Stablecoins
China rehearses September 3 Victory Day parade as imagery points to ‘loyal wingman’ FH-97 family presence
×