Crypto mining requires power, tons of it. So much so that with the increase of crypto mining, various countries are worried about the inadequacies developing from it. Recently, the Argentina Govt has put forward a step in that direction in view of crypto mining operations.
Argentina Govt is figuring out the exact power usage crypto mining takes from the national power grid. This is in order to improve the current power crisis in the country.
The state-owned energy wholesaler, Cammesa, sent a letter to large-scale consumers regarding the report of energy consumption from the mining operations.
According to the local media, Argentina Govt will take action to get miners to pay extra for this energy. For this, they’ll launch a new tariff scheme, making crypto miners invest in the power system directly. Doing so, they’ll provide some relief to the stress at the national grid which faced power cuts affecting thousands of citizens.
Local crypto experts have talked about the migrations some companies are doing to host their operations. According to them, this has negatively affected the national grid. Moreover, locals suggest that around 200 farms of this kind have cropped up in the country. Surprisingly, half of them are operating in the country’s capital, Buenos Aires.
The major reason for these operations is the profitability investors can achieve via avoiding taxes. Also, since all these operations are covert, they can speed up return on investments (ROI) times for mining investors.
Estimates suggest that investors can recover their investments in six months compared to eighteen months for other operations.