Crypto Mining In Cuba Suffers Owing To Electricity Crisis

Published on:

Cryptocurrency mining in Cuba has been interrupted for some time due to the electricity crisis on the Caribbean island. Several parts of Cuba have experienced repeated blackouts, which have made mining rigs in Cuba unsustainable and even impossible in certain cases.

This has caused many Cubans to lose thousands of dollars that they had invested in procuring crypto-mining equipment and graphics cards. The constant electricity blackouts have led to consistent interruptions to the mining hardware, which has hindered the potential income of the operators.

Reportedly, Cuban citizens have been experiencing electricity blackouts that extend for more than 10 hours a day. Furthermore, meteorological events such as Hurricane Ian have rendered the country’s electric power plants less than optimal.

Cuban Power Grid Not Suitable For Crypto Mining

Crypto has secured a noteworthy level of functionality in Cuba. However, electricity service interruptions have repressed the profitability of this particular activity in the country. Crypto mining was once considered a wise investment by the Cubans, but the present condition of the Cuban power grid has made citizens constantly look for ways to navigate the issue.

A small cryptocurrency miner called Raydel Gonzalez, who built his own mining rig, spoke with the local news site CubaNet, where he explained the challenges and difficulties that a miner has to go through in the country.

“I, like many others, had invested a lot of money in cryptocurrency mining equipment that is not cheap,” Gonzalez said. “With the advent of blackouts, cryptocurrency mining in Cuba is unsustainable.”

Gonzalez is not the only one in this boat. Other miners like Eduardo Gomez had bought the power plants and believed that this move would keep the operations ongoing. Furthermore, there has been a scarcity of gas that has made the problem even bigger for the operations that function with off-grid power to be a sustainable source. Eduardo Gomez stated that he is struggling to bring in revenue from an investment worth $5,000.

Internet Is Also Affected By Electrical Fluctuations

Cuban miners continue to search for other alternatives to work around the electricity problem in their country. Another major resource that has suffered tremendously is the internet. The internet is a vital component for crypto mining, and that seems to be affected by electricity blackouts and shortages of fuel in Cuba as plants have become non-functional.

Miners who kept their equipment running have encountered additional problems as a result of the volatility. The last resort, which also happens to be one of the riskiest ways to make ends meet for miners, is to move their equipment to their job sites, as the state workplaces have power plants.

This can have other impacts, such as the loss of their jobs and mining hardware, along with the threat of more serious sanctions. Many miners are selling their mining rigs well below the cost price in order to make up for at least some of their investment.

Young Cuban entrepreneurs had taken to crypto mining as a way to earn these digital assets. This would provide miners with benefits, which include making online purchases abroad and sending payments and remittances for services.

Source link