Bitcoin mining can be quite the profitable business in countries such as Venezuela. Despite the allure this concept may have, it is not a guarantee of success either. Considering the financial turmoil and stagnating job market in the country, cryptocurrency can make a significant impact. In fact, for some people, it may be their only hope to survive in these times of economic hardship.
The financial situation in Venezuela has been documented multiple times over the past few months. With the national currency falling in price, and the government running out of money quickly, things go from bad to worse. Monthly stipends are worth roughly US$9, which is insufficient to survive.
Enter the Bitcoin ecosystem, with its allure of financial freedom and golden opportunities. Getting involved in Bitcoin is not easy, but it is worth the trouble in Venezuela. Some locals even started their down mining operations, in the hopes of improving living conditions. However, running such an operation is not without risks by any means.
Bitcoin Improves Living Standards In Venezuela
In fact, multiple threats are looming on the horizon for Bitcoin miners. First and foremost, the government is extorting people to halt their Bitcoin operations. Additionally, violent crime is rampant in the country. Anyone who makes a decent amount of money becomes an immediate target for criminals.
In fact, the government has arrested several people for their Bitcoin mining operations in the past. High electricity use raises a lot of unwanted attention for miners forcing them to look for alternative solutions. Bitcoin provides the locals with freedom, which doesn’t fit the political agenda of most government officials in the country.
Even though mining Bitcoin is legal in Venezuela, that does not mean miners won’t face criminal charges. Police officials will always find something to cause havoc if they want to. In fact, the government even went as far as cutting power supply selectively. Outages are becoming far more common, causing even more concerns for Bitcoin miners.
At the same time, this type of activity is perhaps the best use case for electricity in the country right now. Unlike the Bolivar, Bitcoin is a stable currency providing consumers with a way of living somewhat comfortably. Governments can’t control it, which will always be a thorn in their side. However, holding a population hostage by forcing them to use a sinking currency is not a great idea by any means.
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