Venezuelans Turn To Bitcoin Mining To Offset Economic Depression

Dec 15, 2016 at 16:01 // Politics
Jacob Okonya
Venezuelans turn to bitcoin mining to offset effects of economic depression

Venezuela, one of South America’s biggest oil-producing nations, is an economically depressed nation characterized by high rates of unemployment, food rationing and massive migration to other countries, including Europe. Despite all this, the socialist government is offering almost free electricity to people which aids Bitcoin mining activities.

“They pay the cheapest electricity bill on the planet. We know a mining farm operator who has close to 1 petahash  of power and his electricity bill is close to $20 per month. The average electric bill for 320kw consumption is close to 6 cents. This means that  a person mining bitcoins with old equipment at home makes more money than an engineer working 160 hours a month”, - says Rodrigo Souza, core developer at Blinktrade, an exchange in Venezuela.

In trying to offset the economic depression that has stricken Venezuela, many people have moved out of the country to try and find a better living elsewhere, but some people saw the benefits of bitcoin mining and turned instead to mining in order to make a decent living. talked to Kevin Charles, CEO and co-founder at SurBitcoin, a company based in Venezuela, and this is what he had to say:

“Mining is a very power-intensive and competitive process, it takes a lot of resources for someone to get some profits out of mining. Mining ASICS are very expensive and localized to china in most cases making them even more expensive to import into the country. I believe only a few people with some huge savings can benefit from Bitcoin mining operations”

If mining operations are very expensive, what is there for Venezuelans now? also talked  to Haipo Yang, CEO at viaBTC, and he emphasized that cloud mining in mining pools might just be the thing Venezuelans who believe mining can help them need, he stated that:

“It’s true, individual mining AKA solo mining is a very expensive activity, I would advise those with a small amount of money to invest in mining pools and just spend some little time to manage their accounts, avoiding all the hassles of having machines making noise and producing excessive heat in your basement, that is what we do at viaBTC”

Does the solution to this crisis lie with Bitcoin alone?

Many times, people try to find quick solutions to the most pressing issues affecting them. Some people go on a gambling spree hoping it can solve their problem and most times it turns out negative. investigates in this article how a personal economic problem can be offset in the 21st century. Obviously, the best answer to an economic problem lies in finding an employment where money can be earned. talked to Jochen Biedermann, Managing Partner at  Biedermann International Consulting, and managing partner at Silk Road Group.

“The government cannot be relied upon for everybody’s economic problems, the internet itself offers a broad range of opportunities that someone can earn a living from. In modern ages, a poor person is the one who has no access to information”

On whether Bitcoin is the sole solution to this economic crisis Jochen Biedermann said:

“There are very many methods of offsetting an economic woe of the magnitude that has hit Venezuela, in my opinion, government intervention is the best shot as all other individual activities are influenced by government policies” 

To date, Venezuela is still in a crisis and day by day a lot of Venezuelans are moving out to other nations in the hopes of finding employment and helping their relatives back home.

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