Paraguay’s Economic Debt Crisis Could End with Bitcoin Mining as a Big Boost to the Bottom Line
Paraguay has had several hydroelectric towns that many had associated them with the drug cartels, ammunition and also smuggling.
But now it has become the new home for the crypto miners in the market who have been connected to a very sophisticated network involved with mining crypto coins for their owners.
It is finally giving rise to this meaningful industry
Patrol teams constantly guard the city of Ciudad del Este due because of its close border proximity to Argentina and Brazil. The empty spaces and the warehouses that are close to the electricity are very busy at the moment, and this is because they are wiring up with several data centers which will be mining Ethereum and Bitcoin around the clock.
Most of the citizens around the town are unaware of the new industry that is slowly growing amongst them, and industry that seems to have been created overnight, but for the insiders they view it as the new movement taking place as it is a new economy that is brewing, one that means be a great opportunity for the citizens to exploit the value creation and be able to create employment.
However, for the environmentalists, this is not a good sign for them. At the moment the cities yearly temperature is about 22 degrees centigrade, but having these mining data centers in place will mean an increase in these numbers. It is estimated that about 20,000 mining units are already in place, and the activity level does not seem like it will slow down.
The reason for this boom within the region is due to the favorable conditions that are being offered, that is having favorable government regulations in place, the cold weather, the abundant cheap labor and not forgetting the low taxes. All these components quickly add up to the development of the Silicon Valley.
But for the city, with the monolithic Itapúa dam has formed a significant factor in the formation of these mining hubs. It is because the plant has been able to produce abundant hydroelectric, one that has been powered by the fast-flowing Parana river that is just north of the city. Thus, all this is a boon for the data mining centers that are being set up in the town.
But from an economist’s point of view, it would be important to adequately utilize the hydroelectricity in Paraguay to better help the country’s population and pull it out of poverty.At the moment the country has the worst unemployment rates that are found around the world together with the highest level of inequality when it comes to land ownership, this is according to the World Bank data.
The crypto coins in the market mean nothing but business
With the Mining centers in place, they have been able to give a flurry of different business, when we look at Gregorio Barreiro he has been able to find hundreds of customers for his air conditioning services.
He was able to leverage on the connections and went ahead to create several DIY (do it yourself) cooling systems, items that used the industrial fans and a simple dam cardboard. When we flash-forward to a year later from when he began, he is able to rent out about 750 of his custom-built mining rigs that have been attached to the cooling system.
With the new industry venturing into the country it will inevitably create several millionaires in the market.