While numerous countries have experienced booms in crypto mining this year, ultra-low utility rates and the resurgence of capital controls are helping supercharge profits for miners in the South American nation. For many experts, it’s yet another example of Argentines’ perennial ability to bend the nation’s heterodox policies to their advantage.
“Even after Bitcoin’s price correction, the cost of electricity for anyone mining from their house is still a fraction of the total revenue generated,” said Nicolas Bourbon, who has experience mining digital currencies from Buenos Aires.
Cryptocurrencies have long been trumpeted in Argentina as a way for locals to hedge against cyclical economic crises, including repeat currency devaluations, defaults, hyperinflation, and now, a three-year recession made worse by the pandemic.
