Crypto mining secures the electrical system of Tierra del Fuego

In favor of cheap fares, it became Tierra del Fuego the cryptocurrency mining capital. What could be good news is of great concern to the provincial government. The reason is the activity, almost no regulation and having the right climate to cool the equipment, It consumes 22% of the electrical energy of the entire island. “The 3 main cities, Ushuaia, Río Grande and Tolhuin they are already at the limit”, Graphs by Moisés Solorza, the provincial Secretary of Energy.

According to a report by wholesale distributor Camessa, between August and October, Tierra del Fuego consumes 40.2 megawatts, which is the equivalent of 9.7 megawatts by crypto mining companies. In the area, BitPatagonia (who settled in the territory in 2018) and the Leanval group, which has been stockpiling small appliances since 1967, stand out. However, they say many individuals are involved in the activity, attracted to low value. of creating new bitcoin or ethereum, to name the most popular cryptos.

Tierra del Fuego is a more suitable place for that. Cryptocurrency mining is already happening requires a lot of electricity to enable interlock server farms, computers, and video cards. For that reason is the Cold areas help with cooling (almost free) the equipment. The National State subsidizes the rates, but the construction and maintenance of the infrastructure is borne by the province.

“Tierra del Fuego is not in the SADI (Argentine Interconnection System) and we are urgently managed to maintain the installed energy and inherited equipment, which it is almost obsoleteSolorza said Clarion. The current administration, led by Gustavo Melella, near Casa Rosada, blames the previous government (the Peronist Roxana Bertone) for “encourage crypto mining irresponsibly”.

The arrival of winter worries the authorities. The fear is that increasing power consumption will cause service delays. This is an input on which families and manufacturers of cell phones, televisions and air conditioners rely, among others. In addition to large crypto-producing farms, “home micro-miners increased and the lack of controls that should be established to set rules and regulate standards, ”the official added.

The mention is unintentional. Many countries, including China, India or Russia, regulate activity because of the high energy risk. There are others whose activity is also in their sights, saddened by the enormous amount of electricity consumed by companies in the sector.

Attracted by highly favorable context, BitPatagonia was installed on the island in early 2018 to produce bitcoins, whose price has reached close to US $ 65,000 per unit. Now it’s less than $ 40,000. To improve costs, BitPatagonia subleted space at one of Newsan’s plants, in Ushuaia, which has its own meter. “Besides, the building warms us up,” they conclude from the business group, led by Rubén Cherñajovsky.

Mining bitcoins is the equivalent of printing money in the real world, with a difference. Its promoters claim that it will only reach 21 million units, so they think that its price increase will not stop. Mining is about solving complex cryptographic puzzles, which is only possible with massive computing power. Hence the farms and computer networks set up with the aim of accrediting cryptocurrencies. For companiesthe equation is cost (energy, mainly), benefit (charges in cryptocurrencies).

In Tierra del Fuego they created other accounts. Solorza describes it: “They use the installed infrastructure without any contribution for their use and does not pay fees for network use. It should be mandated, controlled and I believe that the State should participate in the sale of services, with energy at fair prices and with the collection of taxes ”, his list.

The official added that all of this is under review, as well as the power line on which the Fuegian population depends. Consistent and due to high inflation, cryptocurrencies are all the rage among Argentines. A recent study found that Buenos Aires, Córdoba and Quilmes are the three districts in the country with the largest number of operations. Lomas de Zamora and Berazategui follow in the background.