The infrastructure of the concession area to which they are connected is challenged by mining
The restriction on mining in China has forced miners to look for new nations where they can continue to operate. Some people were lured to Argentina by promises of lower expenses. New taxes have been implemented by the country’s authorities for crypto miners in Tierra del Fuego.
Energy subsidies for cryptocurrency mining have been eliminated, according to Argentina’s Energy Secretary, who issued and announced Resolution 40/2022. Up to four times as expensive to mine in the country as it was before the new prices were implemented.
According to the resolution, miners utilise a lot of energy on a regular basis, whether it’s hourly or seasonal. As a result, crypto mining “presents issues to the concession area’s infrastructure.”
According to the decision, crypto miners must pay “equal to the cost of supply” because the activity is profitable and payment is accessible. That the miners are paying the same subsidised price as a residential customer is also a point of contention.
Miners in Tierra del Fuego, a place noted for its frigid environment and hence perfect for those who need to regulate the temperatures of mining equipment, would be impacted by the new regulation.
Irkutsk Oblast, a federal Russian area, is struggling to keep up with rising demand for Bitcoin mining energy. As a result of expanding mining operations, the region is struggling to maintain stable energy supplies.
Miners have also had to contend with natural disasters in addition to rising energy costs. It was owing to an expected increase in demand for energy during the storm that a miner in Texas decided to close 99 percent of its operations. The state’s electricity grid was relieved of some of the strain as a result of this.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.