Will Paraguay Invest Its Excess Power Into Bitcoin Mining?

All of that power resulted in a crypto mining industry, particularly Bitcoin and Ethereum, popping up "Almost overnight," according to the Guardian.

An article published Monday noted that some are profiting from the country's increase in crypto mining, renting out their rigs for cash or raking it in themselves, but others think that power could be better used elsewhere.

"Many argue Paraguay could better use its abundant hydroelectric energy to help the quarter of the population. that currently live in poverty. According to World Bank figures, Paraguay has the highest level of inequality. in land ownership in the world."

Businessman Gregorio Bareiro told the Guardian that some have already made millions from crypto mining.

He first encountered crypto mining when he started building ad hoc cooling units for mining rigs.

Since Paraguay's power grid isn't equipped to handle the Itapú's massive output, they sell the excess to Brazil, which keeps energy prices incredibly cheap: around five cents per kilowatt-hour, according to the Guardian.

Investing In Infrastructure, Instead?People in the crypto business like Bareiro want to take the excess energy produced by the dam and channel it into more mining efforts, but others think the extra power would be better invested in Paraguay's manufacturing facilities.

As it stands, the crypto mining boom in Paraguay doesn't appear to be slowing down.

Since around January of 2018, small crypto-related businesses and mining farms have been cropping up to take advantage of the country's cheap energy bounty.

If Paraguay can gain the upper hand in the upcoming negotiations over Itapú's mammoth power output, they'll have to think very carefully about what comes next.