To avoid price instability, a 6000-strong community intends to raise revenue by selling the mined cryptocurrency right away.
Serodino, in Argentina’s Santa Fe Province, may start mining cryptocurrency in order to raise funds for rail infrastructure upgrades. Its mayor believes there is no risk in mining digital currency that can be sold right away.
According to local media reports from April 10, the 6000-person town has already purchased six graphics cards and will be purchasing a mining setup soon. The plan to mine cryptocurrency was backed by the local population, according to Sorradino mayor Juan Pio Drovetta.
Sorradino, like many other rural communities in Argentina, was heavily impacted by the COVID-19 pandemic and the ensuing inflation, and is now struggling to pay for an overhaul of its train infrastructure, which was reopened for the first time in 33 years last year. The renovation will also include rail investments that will connect Sorradino to nearby major cities.
Drovetta anticipated that the town’s proposed mining activity would bring in several hundred dollars each month. The mayor made no mention of the coins that will be mined in Sorradino. In response to concerns about the price volatility of crypto assets, he stated that, while no direct purchase of crypto is planned, mining remains a secure investment option:
“We are not investing in cryptocurrencies in order to profit from a speculative move in which we [either] win [or] lose. We’ll continue generating cryptocurrencies, so we’ll always be in the lead.”
Drovetta also stated that the town intends to pay taxes from its mining earnings after conducting the proper study. Serodino has the potential to set a precedent for a direct community investment in crypto mining if it begins mining. It’s far more usual to see organised mining players buying power capacity in tiny towns (like Bitmain in Rockdale, Texas) or even central governments trying to build mining cities from the ground up, like in the renowned Salvadoran project “Bitcoin City.”
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.