Why Is Venezuela Becoming The Hub Of Bitcoin Mining?

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Why Is Venezuela Becoming The Hub Of Bitcoin Mining?

Bitcoin has the highest store value in the entire cryptocurrency marketplace. The market cap of bitcoin recently reached a milestone of $800 billion even after the cryptocurrency market crash. Acquiring the hold of bitcoin is a very tempting job as the store value of bitcoin is inclined at an enormous pace.

There are two basic methods to acquire the hold of bitcoin units; the foremost is bitcoin mining, and the second is buying bitcoin with the help of a trustable exchange. All the more, there are website like this software that can help you get profitable results in your bitcoin trading venture. Buying bitcoin is an exceeding job, whereas bitcoin mining is very challenging. Bitcoin mining is a computer-based process.

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Proof of work demonstrates that every miner has to solve a complicated math puzzle to bitcoin units as a process reward. Bitcoin mining is also a profitable business as several companies are involving themselves in the bitcoin mining industry.

The cost of bitcoin mining varies from region to region. However, according to rich sources, Venezuela is the new hub of bitcoin mining. Below are some of the prominent reasons why Venezuela is the new hub of bitcoin mining. So why are you waiting? Let’s jump straight to the facts.

Bitcoin Mining

Bitcoin Mining

Before understanding why, the profitability of bitcoin mining is much higher in Venezuela, you should know some basic concepts of bitcoin mining. First, bitcoin mining seems to be the action of adding new bitcoin units to circulation.

However, bitcoin mining does not merely add new bitcoin units to circulation but correspondingly embraces the security of the bitcoin complex. Bitcoin miners verify transactions and compel these transactions in a block; the bitcoin algorithm later broadcasts the block to the blockchain.

Blockchain is a public distributed ledger that stores information regarding bitcoin transactions. Blockchain has some fascinating features which make it much better than the traditional database system. To verify a set of transactions, bitcoin miners have to decode challenging math puzzles. Bitcoin miners have to use robust bitcoin mining hardware to solve the challenging math puzzle at the very first instance.

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Bitcoin miners can only avail of the block reward if they solve the math puzzle 10 minutes faster than other miners. In addition, robust bitcoin mining rigs and specialized bitcoin hardware consumes a massive chunk of electricity. Here are some of the reasons why Venezuela is becoming the new hub of bitcoin mining.

Cost of Electricity in Venezuela

Venezuela is an oil-rich nation. All the more, bitcoin mining in Venezuela is exceedingly cheap; the mere reason why Venezuela is becoming the new hub of bitcoin mining is the nominal price of electricity. But, of course, you are familiar with the fact that bitcoin mining consumes a gigantic chunk of electricity.

The prominent reason behind this is that miners use robust mining rigs to avail profitable results in the bitcoin mining expedition. But unfortunately, these bitcoins mining special hardware consumes a considerable amount of electricity. All the more, if a miner fails to solve the math puzzle in 10 minutes and earlier than another miner, they will have to restart the process.

The profitability of bitcoin mining drastically changes from region to region as the cost of electricity is different in every possible region. Bitcoin mining hardware and rigs are one-time expenses, but electricity derives the expenses of bitcoin mining to an exceeding extent.

The cost of electricity in Venezuela is the cheapest of all time. The fact that might amaze you is that the cost of electricity in Venezuela is merely 0.06 cents per kWh. All the more mining bitcoin in Venezuela merely costs you from $1000-$1500. However, living in Venezuela for mining bitcoin is challenging as Venezuela’s unemployment rate is very high. The rate of inflation in this country is nearly 3000%.

Undeniably, mining bitcoin in Venezuela is the cheapest, but there is a shortage of food and other resources due to inflation. In addition, you are familiar with the fact that bitcoin mining is a virtual and computerized progression, and it needs a strong internet connection.

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However, the speed of the internet in Venezuela is significantly less in contrast to other American countries; regardless of the low price of electricity, there are frequent power outages. There are several bitcoin mining pools in Venezuela which are availing profitable results in the bitcoin mining process.

These are some of the prominent reasons why Venezuela is the bitcoin mining hub.