Bitcoin diggers in Argentina benefit from government-subsidized electricity. Even after Bitcoin’s recent price correction, the cost of electricity for anyone working from home is always a fraction of the total income generated. Canada’s Bitfarms has already signed an agreement with a local power plant to process 250 megawatts of natural gas-powered electricity.
In addition to cheap electricity, the ban on buying dollars has led more Argentines to start mining bitcoins.
In fact, the value of bitcoin rose to 5.5 million pesos in local markets, up from about 3 million pesos at the official exchange rate.
Although Argentina is a net importer of gas, consumers’ electricity bills are only about 2 to 3 percent of an average monthly income, in other Latin American countries such as Brazil, Colombia or Chile it is much higher.
Hence, more and more bitcoin delvers are looking to Argentina, especially now that China wants to impose all kinds of restrictions on delvers.