INSUBCONTINENT EXCLUSIVE:
Venezuelan President Nicolas Maduro had launched a cryptocurrency called 'Petro' in 2017There are two ways to earn Bitcoin
One is by purchasing it with fiat money from an online exchange and the second more complex way is by mining it
It is a specialised process
Miners solve complex mathematical equations to verify each cryptocurrency transaction and as a reward for their successful effort, earn
This process requires heavy computers and other equipment and consumes a vast amount of energy
So, a surge in mining operations in Venezuela has drawn global attention
Why is the oil-rich nation suddenly becoming a hot spot for cryptocurrency miners?With electricity prices as low as 0.06 cents per kWh,
crypto mining is proving to be extremely lucrative in Venezuela, a country riddled by economic uncertainty and a high unemployment rate
Also, inflation is running at nearly 3,000 percent
So some people are willing to bet everything on this technology despite fears of volatility usually associated with these virtual currencies
While the lure of quick wealth creation is forcing Venezuelans to get involved with mining, not everyone can become a miner in the South
American country, where the minimum wage is around $10
power outages and slow internet speeds
However, these roadblocks are not powerful enough to deter the Venezuelans or disrupt a growing crypto mining industry.Hyperinflation has
dogged Venezuela's currency, the bolivar, for several years now and it has continued to slide against the US dollar
Many see cryptocurrencies as a way out of hyperinflation for many people.Previously, Venezuelan President Nicolas Maduro had launched a
cryptocurrency called the 'Petro' in 2017
He said Petro would pave the way of getting around what his government called the American "financial blockade" of the South American
country.Despite the president pushing to make it popular, Petro failed to win consumer or investor confidence
Bitcoin, on the other hand, has caught the imagination of Venezuelans.
