As Venezuela suffers its worst meltdown in history, with inflation skyrocketing and basic necessities running in short supply, many have taken to bitcoin mining in a bid to survive, according to a report in the current issue of the Atlantic.
The reason? Electricity is now cheaper and more affordable in the crisis-hit country than most basic goods. That's because under President NicolÃ¡s Maduro, electric power is heavily subsidized to the point that it's essentially free, the Atlantic said.
Bitcoin mining works like this: Miners use computer hardware to perform complex computations that ultimately create each new link in the bitcoin blockchain â the massive, decentralized ledger technology that underpins the cryptocurrency. In return, they are rewarded with bitcoin. One of the key requirements to mine bitcoin is to have a large supply of power.
The Atlantic explained that a Venezuelan user who can run several bitcoin mining devices can clear about $500 a month â that is considered a small fortune enough to feed a family of four and purchase vital goods such as baby diapers or insulin from overseas.
But authorities have begun cracking down on mining operations, according to the Atlantic. The report explained that because the country does not have cryptocurrency laws, police are arresting miners on "spurious" charges. That move has driven miners deeper underground and some are reportedly moving into ethereum for higher profits.
Reading the full story about the rise of bitcoin mining in Venezuela here.
Petro Debut: What We Learned About Venezuela's Cryptocurrency Today
The government of Venezuela published several guides Tuesday in support of the presale for its "petro" cryptocurrency.
Announcing the oil-backed token as a form of legal tender that can be used to
US Securities Regulator Rejects BitConnect Records Request
The U.S. Securities and Exchange Commission (SEC) has denied a Freedom of Information Request (FOIA) regarding the BitConnect cryptocurrency investment scheme, citing an exemption usually applied to r
Dutch Bank ING Says Crypto Exchange Bitfinex Is An Account Holder
ING Groep NV confirmed Tuesday that cryptocurrency exchange Bitfinex has an account with the Dutch bank.
According to Bloomberg News and Reuters, a spokesperson for the financial services company a
Report: Japanese Crypto Exchanges Unite to Form Self-Regulatory Group
A group of Japanese cryptocurrency exchanges is reportedly uniting to form a new self-regulatory body in the wake of the recent Coincheck hack.
According to Reuters, which cites unnamed sources clo
Bitcoin’s bouncing back, here are the next big catalysts for the cryptocurrency
Bitcoin is back. The cryptocurrency surged Tuesday, closing in on the $12,000 level. One bitcoin bull says progress on the regulatory front could send it even higher. According to CNBC "Fast
EU Regulators to Discuss Crypto Regulation Next Week
A group of European Union regulators will meet next week to discuss the regulation of cryptocurrencies.
Speaking to reporters on Tuesday, European Commission vice president Valdis Dombrovskis said
Lisk Relaunches Blockchain Project With 'Accessibility' in Mind
The team behind the Lisk blockchain network is hosting a relaunch event in Berlin today, boasting a new look and long-term plan for the project.
"Rebranding normally only involves a change of desig
Finland Mandates Cold Storage, Public Auctions for Seized Bitcoins
Finland's government released new guidelines today that set out how law enforcement officials must handle cryptocurrencies they confiscate.
The official agencies in charge of storing the cryptocurr