Daily Archives: October 12, 2021

US Inflation Expectations Highest Since 2013, Gas Prices Skyrocket, Supply Chains Buckle

Americans are still concerned about dealing with inflation, as the cost of goods and services has continued to rise significantly in a short period of time. The Federal Reserve has published the latest Survey of Consumer Expectations report and U.S. households believe inflation will be up 5.3% one year from now. In addition to the dreary economic outlook, gas prices across the U.S. have skyrocketed up more than $1 from a year ago.

New York Fed’s Survey of Consumer Expectations Continues to Look Gloomy

After 2020’s massive monetary expansion, in order to help the economy combat the coronavirus outbreak and help facilitate the lockdown orders that subsequently followed, inflation has crept into the wallets of every American.

Month after month, the Federal Reserve has published the central bank’s Survey of Consumer Expectations (SCE) reports, and every month, inflation expectations jump higher. Once again, the latest Fed SCE report published on Tuesday indicates that Americans are still expecting higher inflation and low purchasing power a year from now.

The inflation expectations have surged to all-time highs and are the highest levels since 2013, with an expectation of 5.3% one year from now. Furthermore, the New York Fed (the branch that publishes the SCE report), once again mentions the coronavirus.

“Median inflation uncertainty – or the uncertainty expressed regarding future inflation outcomes – was unchanged at the short-term horizon and decreased at the medium-term horizon,” the Fed survey highlights. “Both measures are still well above the levels observed before the outbreak of Covid-19.” The recently published Fed SCE report leverages a rotating panel of 1,300 households.

IMF Warns Central Banks Like the Fed to Tighten Monetary Easing Policy

In addition to the SCE report, the International Monetary Fund (IMF) has noted, in the world organizations’ quarterly update on global economic conditions, that central banks may need to tighten monetary easing policy. The IMF emphasized countries like the U.S. and the U.K. where “inflation risks are skewed to the upside.”

“While monetary policy can generally look through transitory increases in inflation, central banks should be prepared to act quickly if the risks of rising inflation expectations become more material in this uncharted recovery,” the IMF’s economic counselor and director of research, Gita Gopinath stressed in the report. “Central banks should chart contingent actions, announce clear triggers, and act in line with that communication.”

Supply Chains Buckle, Gas Prices per Gallon $1 Higher Than Last Year

To make matters worse, the U.S. supply chain (and internationally) has been dealing with significant issues and gas prices across the country have risen significantly since last year. The media in the U.S. continues to tell tales of a buckling supply chain and some are blaming supply chain issues on the conflict between the U.S. and China.

Supply chain shortages and rising gas prices have fueled the inflation crisis in the U.S., so much so that doesn’t seem to be ‘transitory.’ Every week, headlines show that “the return of empty shelves” has returned in the United States as well as the United Kingdom. Grocery stores in nearly every state across the U.S. are starting to see empty shelves again.

U.S. gas prices have also risen by $1 since last year and the average price of gas in the U.S. today is $3.25 per gallon. Only eight states in the U.S. have gas for under $3 a gallon.

What do you think about the current inflation woes Americans are dealing with in 2021? Let us know what you think about this subject in the comments section below.

NASDAQ-Listed HIVE Blockchain to Expand Data Center in New Brunswick, Canada With 40 Megawatts Capacity

HIVE Blockchain is set to expand its data center campus in New Brunswick, Canada with 40 megawatts capacity. It is the first publicly-traded cryptocurrency miner, listing in Toronto on the Venture Exchange back in 2017 and added to NASDAQ in 2021. It mines both Bitcoin and Ethereum using 100% green energy in facilities across Canada, Sweden, and Iceland.

HIVE Blockchain to Expand Data Center in New Brunswick, Canada

HIVE Blockchain Technologies (NASDAQ: HIVE, TSX.V: HIVE) will soon begin testing a new high-performance computing cloud hosting operation. At the company’s largest data center campus in New Brunswick, Canada, where it owns the land, the team is currently building expansions from the ground-up (“greenfield expansions”), which will provide it with 40 megawatts of data center capacity.

HIVE currently operates 5 data center campuses, where they are mining both Bitcoin and Ethereum. HIVE’s data centers already have access to approximately 50 megawatts of power, placing it among the largest and most diversified of any publicly-listed cryptocurrency miner. These facilities are located in Canada, Sweden, and Iceland, countries that offer a winning combination of cool climates and politically stable jurisdictions. Additionally, these locations offer unique access to abundant green energy, so all of the HIVE data centers are powered by clean, low-cost hydroelectric or geothermal power.

Owning the facilities where they are operating data centers is key to HIVE’s long-term strategy. For one thing, they don’t have to worry about any landlords raising the rent at these facilities. And as you can see they can choose locations with access to some of the cheapest, greenest, and cleanest power in the world. Owning data centers also gives the company greater flexibility in a few ways. For example, if there’s another “crypto winter”, the company could offer hosting services while still mining crypto with its own machines, and holding as many of the coins mined as possible until the prices rise again.

A Bridge Between Digital Currency and the Stock Markets

HIVE is a growth-oriented technology stock in the corporate blockchain industry. As a company whose shares trade on a major stock exchange, they are building a bridge between the digital currency and blockchain sector and traditional capital markets.

Since the beginning of 2021, HIVE has held in secure storage the majority of its ETH and BTC coin mining rewards. Its shares thus provide investors with exposure to the operating margins of digital currency mining, as well as a portfolio of cryptocurrencies such as ETH and BTC, in a way that they are familiar with and that complies with regulations.

Because HIVE also owns hard assets such as data centers and advanced multi-use servers, the shares offer investors a diversified and robust way to gain exposure to the cryptocurrency space. This is probably why HIVE traded over 2 billion shares in 2020 alone.

To learn more about HIVE Blockchain check out the company’s website and follow the team on YouTube, Twitter, Instagram or Facebook.


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Millions of Wix Merchants Can Now Accept 12 Different Cryptocurrencies

Millions of Wix Merchants Can Now Accept 12 Different Cryptocurrencies

On Tuesday, the Atlanta-based cryptocurrency payments company Bitpay announced the Israeli software company Wix has enabled its Software as a service (SaaS) e-commerce product to accept crypto-asset payments. The integration will allow Wix merchants to accept 12 different cryptocurrencies such as bitcoin, dogecoin, bitcoin cash, ethereum, litecoin, and stablecoins as well.

SaaS Platform Wix Implements Bitpay Infrastructure So Merchants Can Accept Crypto

Founded in 2006, by the Israeli software engineers Nadav Abrahami, Avishai Abrahami, and Giora Kaplan, the global SaaS platform Wix provides users with the ability to develop both mobile and HTML5 websites without coding experience. On October 12, Wix announced that it would be implementing Bitpay’s cryptocurrency payment processing infrastructure so users can choose it as an option for the Wix e-commerce platform.

Alongside five different stablecoins such as BUSD, DAI, GUSD, USDP, and USDC, Wix Merchant users can also accept bitcoin (BTC), bitcoin cash (BCH), dogecoin (DOGE), ethereum (ETH), litecoin (LTC), wrapped bitcoin (WBTC), and XRP (in specific jurisdictions). Metrics indicate Wix makes about $1 billion in revenue via its product services such as the website builder, business management services, and web hosting.

“Wix is one of the largest and most widely used web development platforms with over 210 million users, so this is another step forward in moving cryptocurrency mainstream,” said Stephen Pair, Bitpay’s CEO in a statement. “Businesses can get to market quickly and capture incremental sales by tapping into the massive trillion-dollar cryptocurrency marketplace,” Pair added.

Wix Executive Notes the Move Gives Merchants a ‘Whole New Market of Customers Who Prefer to Pay With Crypto’

Bitpay has made a number of moves in the industry during the last year with well known firms like Universal Air Travel Plan (UATP), the youth fashion and retail brand Pacsun, Shop.com, Dr. Luke’s music company Prescription Songs, the luxury hotel group The Kessler Collection, Verifone, the pet services platform Wag, the virtual cloud desktop startup Shells, the luxury fashion e-tailer Jomashop, and the leader of collector car, vintage and antique motorcycle, and road art sales Mecum Auctions.

“We’re continuing to integrate with innovative payment partners to offer Wix merchants even more payment options to offer their customers,” Omer Shatzky, the head of billing and payments at the SaaS firm Wix. “With Bitpay, Wix merchants have access to a whole new market of customers who prefer to pay with bitcoin and other cryptocurrencies and an avenue for their business to tap into the growing cryptocurrency market.”

According to the announcement, in the first stage of the Wix rollout, Wix merchants and their customers will be able to use the Bitpay service in the U.S., U.K., Germany, Canada, Australia, and Brazil.

What do you think about Wix implementing Bitpay’s crypto payment infrastructure so Wix merchants can accept digital assets? Let us know what you think about this subject in the comments section below.

Nevada-Based Bitcoin Mining Operation Cleanspark Purchases 4,500 Bitcoin Miners From Bitmain

Nevada-Based Bitcoin Mining Operation Cleanspark Purchases 4,500 Bitcoin Miners From Bitmain

Cleanspark, a Nevada-based energy technology and clean bitcoin mining firm, has announced the purchase of 4,500 Bitmain-brand Antminer S19 bitcoin mining rigs. The company says the mining devices were purchased by leveraging a portion of the company’s bitcoin holdings.

Cleanspark Purchases 4,500 ASIC Mining Rigs From Chinese Manufacturer Bitmain

The publicly-listed bitcoin mining firm Cleanspark (Nasdaq: CLSK) announced on Tuesday that the company has purchased 4,500 S19 bitcoin mining rigs from Bitmain. The rigs are expected to start the delivery process by next month and the units were “partially funded through a portion of the company’s BTC holdings.” The company estimates that the machines will increase hashrate by 450 PH/s or 0.45 exahash (EH/s), which is equivalent to Cleanspark’s current capacity.

Cleanspark’s acquisition of 4,500 bitcoin miners follows other major purchases of bitcoin mining machines by large-scale operations this year. For instance, at the end of August, Genesis Digital Assets bought 20,000 bitcoin miners from Canaan. During the first week of August, Marathon purchased 30,000 bitcoin mining rigs from Bitmain. Foundry US has been partnering with a number of operations and has increased in capacity a great deal. At the end of December 2020, Cleanspark acquired the U.S. bitcoin miner ATL Data Centers for $19.4 million.

Company Expects to Have More Than 24K Bitcoin Miners in Next 12 Months, Cleanspark Acquires Georgia Datacenter

Cleanspark expects to increase its current supply of 10,000 miners. The number of miners scheduled for delivery is 24,580 “over the next 12 months.” In addition to ATL Data Centers, Cleanspark also bought a former Sprint/Nextel datacenter in Norcross, Georgia, and the new mining facility will leverage Georgia’s Simple Solar program. Zach Bradford, the CEO of the bitcoin mining and energy technology firm headquartered in Nevada, says the move to purchase the new miners was a “conscious effort.”

“By making a conscious effort to reinvest in additional production, we are taking a market-based approach to our mining operations and maximizing value for our shareholders,” Bradford said in a statement sent to Bitcoin.com News. “We understand that using our bitcoin to support our operations and expansion is a paradigm shift for the digital currency mining industry in North America.”

Not only does Cleanspark have a holding strategy, it also believes that “the value of digital currencies such as bitcoin stems from their usefulness as a medium of exchange.” Essentially, by using the funds to acquire more bitcoin mining rigs, a portion of its mined bitcoins goes back into circulation.

What do you think about Cleanspark purchasing 4,500 miners from Bitmain and increasing capacity by 450 PH/s? Let us know what you think about this subject in the comments section below.

Total Value Locked in Defi Surpasses $200 Billion — Fantom, Avalanche, Harmony, Arbitrum TVLs Swell

Total Value Locked in Defi Surpasses $200 Billion — Fantom, Avalanche, Harmony, Arbitrum TVLs Swell

Decentralized finance (defi) has swelled quite a bit this year and on October 5, the total value locked (TVL) in defi protocols crossed the $200 billion mark. Since January 1, the defi TVL across various blockchains has risen almost 855% from $21.4 billion to today’s $204 billion.

Total Value Locked in Defi Jumps Over the $200 Billion Handle, Ethereum TVL Commands 69% Dominance

The total value locked (TVL) in defi today has jumped nearly ten times higher than the value at the beginning of 2021. On October 5, 2021, the TVL in defi surpassed the $200 billion handle for the first time and the value has remained above $200 billion during the last seven days.

Statistics from defillama.com indicate that the defi protocol Curve has the largest dominance with $15.94 billion, up more than 7% over the last week. Curve’s dominance is 7.80% on Tuesday and it interacts with six different crypto networks including Avalanche, Ethereum, and Polygon.

Metrics show that Aave, Makerdao, and Wrapped Bitcoin (WBTC) command the third, fourth, and fifth positions in terms of defi TVL dominance. Aave commands $14.87 billion on Tuesday while Makerdao holds $13.48 billion, and WBTC captures $11.99 billion in value.

Between Curve, Aave, Makerdao, and WBTC all four defi protocols have $56.28 billion worth of the aggregate TVL, which is 27.53% of the entire TVL today. The entire $204 billion is across blockchain protocols like Ethereum, Solana, Avalanche, Polygon, Fantom, Terra, Arbitrum, Binance, Celo, and Harmony.

Top Ten Dex Platforms in Mid-October 2021 — Funds Continue to Pour Into Waves, Fantom, Polynetwork, Harmony, Arbitrum, and Avalanche Networks

The top ten decentralized exchange (dex) applications on Tuesday include defi projects such as Curve, Pancakeswap, Sushiswap, Uniswap, Balancer, Uniswap V3, Saber, Serum Raydium, and Bancor, respectively.

The top five blockchains with the most TVL on Tuesday are Ethereum, Binance, Solana, Terra, and Avalanche. The Ethereum chain still commands 69.01% dominance with approximately $141.06 billion total value locked on October 12.

The second and third-largest TVLs for Binance and Solana are below the $20 billion mark but above the $10 billion line. While Ethereum has seen a TVL increase of 1.65% during the last seven days, Fantom has increased the most during the last week.

Data shows Avalanche TVL has spiked 19.64% but Fantom’s TVL jumped a whopping 225% in a week’s time. Other leaders seeing increases in TVL over the last week include chains like Waves ($2.15B), Arbitrum ($1.52B), Polynetwork ($298M), and Harmony ($205.92M).

What do you think about the total value locked in defi protocols crossing the $200 billion mark this October? Let us know what you think about this subject in the comments section below.

Major Turkish Crypto Exchange Coinzo Shuts Down

Major Turkish Crypto Exchange Coinzo Shuts Down

Coinzo, one of Turkey’s largest cryptocurrency exchanges, is terminating its digital asset trading services. The platform said its website will remain online in the next six months to allow users to withdraw their holdings in cryptocurrency and Turkish fiat money.

Another of Turkey’s Crypto Exchanges Closes Amid Ankara’s ‘War’ on Cryptocurrency

Leading Turkish crypto exchange Coinzo announced on Monday it’s ending trading operations. The platform called on customers to withdraw their assets in Turkish lira and cryptocurrency without providing any particular reason for its decision to exit the market. In a notice published on its website, the company stated:

 We have decided to terminate our digital asset service provider (cryptocurrency platform) service.

The exchange emphasized that its website, Coinzo.com, will continue to be accessible for another six months, during which traders will be able to log in to their accounts and withdraw Turkish lira and cryptocurrencies. All features will be available except the purchase and sell options.

“Our support team will continue to provide solutions to our users’ problems during this process,” Coinzo added. It also assured that “all Turkish lira and crypto money assets belonging to our users are safe.” Cryptocurrency holdings that are below the minimum withdrawal limit will be credited to users’ accounts in Turkish lira within a week of the announcement.

The exchange revealed that it had already suspended the Turkish lira’s trading pair with its own Coinzo token (CNZ) so that its holders are not affected by price changes after the closure announcement. CNZ balances will be converted at the last transaction rate of 1.516 lira per coin and amounts transferred within seven working days.

Withdrawals in Turkish lira can be made to a bank account that matches the name and surname in a verified Coinzo account. The platform is not going to charge the usual fiat withdrawal commission and the minimum withdrawal limit has been set to 0.1 lira. It has also provided detailed instructions on how to withdraw crypto assets to another wallet.

Coinzo, operated by a company based in the city of Izmir, is one of the five largest exchanges in Turkey, according to a report by the Turkish news portal Diken. The publication claims the crypto platform was registering close to 500 million lira (over $55 million) in daily trading volumes.

The collapse of Coinzo follows that of other Turkish cryptocurrency exchanges such as Thodex and Vebitcoin. The two halted operations earlier this year after TCMB, the central bank of Turkey, prohibited the use of cryptocurrencies for payments. Following the ban, Turkish authorities also updated crypto regulations in May, introducing stricter requirements for local crypto trading service providers.

The news of Coinzo’s decision to close down comes after President Recep Tayyip Erdoğan stated in September that Turkey is “at war” with cryptocurrency, despite earlier reports that the Turkish government had prepared a draft law to regulate the country’s crypto space, expected to enter parliament this October. In July, deputy minister of treasury and finance, Şakir Ercan Gül, was quoted as saying that “those that ban [cryptocurrencies] are generally countries with democracy problems.” His comments suggested that Turkey will follow in the footsteps of the West in terms of its regulatory approach to the industry.

Do you think other Turkish crypto exchanges will go out of business in the near future? Share your expectations in the comments section below.

iExec Launches Oracle Factory Allowing Anyone To Create Custom Oracles in Minutes

PRESS RELEASE. Using the iExec Oracle Factory, developers are able to create their own decentralized oracles with just the API’s URL and key.

October 12th, Lyon, France, 2021iExec, a decentralized marketplace for computing assets, has announced the launch of the iExec Oracle Factory, a developer interface allowing anyone to create their own oracles, from scratch, in minutes, without any blockchain knowledge and directly from their browser.

In order for decentralized applications to solve real world problems, they need to make use of real word data. Decentralized oracles play a major role in blockchain-based architectures, acting as bridges between blockchains and the real world. However, developers who want to create their own oracles need existing blockchain knowledge, and coding them from scratch can take hours.

iExec is releasing the iExec Oracle Factory, making oracles accessible to everyone. The iExec Oracle Factory is an interface allowing anyone to create their own decentralized oracles in just a few clicks. The iExec Oracle Factory makes possible a whole range of blockchain use cases, allowing developers to deploy oracles from any kinds of data: from sport results to NFT price, from temperatures to flight schedules.

Create Custom, Trusted Oracles in Minutes

Several companies today offer ready-to-use decentralized oracles. With its Oracle Factory, iExec aims to fill the need for custom oracles, providing a tool allowing anyone to create not only their own oracles, but also trusted ones.

The iExec Oracle Factory interface has been built to be as easy as possible to use:

  • With the Oracle Factory, it only takes 5 minutes and a few clicks to create a custom oracle. Usually, creating an oracle from scratch takes 1 or 2 hours to code.
  • Using the Oracle Factory, there is no need to write any line of code or even to have any blockchain knowledge.
  • The oracle can be created directly from the web browser, using the URL of the API from which the data needs to be extracted (along with the private API key if the API is not public).

In addition to creating an oracle in minutes, the iExec Oracle Factory allows for ‘trusted’ oracles, using Trusted Execution Environments (TEE) technology. The TEE technology uses hardware enclaves to protect the API key and the data collected, ensuring they remain confidential, secure, and tamper-proof. With the Oracle Factory, iExec aims to make TEE technology accessible to all while creating an oracle.

Once created, users have the option to share their custom oracles with the community, by including them in the iExec Oracle Factory Gallery. This Oracle Factory Gallery will list oracles created within the interface, making them accessible for other users and developers. The iExec Oracle Factory also provides preset oracles, ready-to-use, as examples for the community.

Today, iExec releases the beta version of the Oracle Factory. There will be several upgrades of the product, to include more technical features, allowing developers to quickly implement smart contracts and deploy decentralized applications.

Access to the iExec Oracle Factory here

 

About iExec

iExec is a blockchain company that provides a decentralized marketplace for computing assets, allowing anyone to monetize or rent datasets, decentralized applications, and computing power. Blockchain is used to organize the exchanges between stakeholders with the maximum level of trust and security, without a centralized authority. iExec owns its native utility token, the RLC, used as the method of payment on the marketplace.The RLC token is listed on over 40 echanges, including major ones: Coinbase, Binance, Bithumb, Huobi and more. The company also works with renowned partners such as Intel, Google Cloud, and IBM Cloud.

For more about iExec and its innovative new Oracle Factory, visit their main website here.

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Join the iExec community on Telegram

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Stay up to date on Slack

 

Media Contact Details

Contact Name: Marianne Negrello (Communication Manager)

Contact Email: [email protected]

iExec is the source of this content. This Press Release is for informational purposes only. The information does not constitute investment advice or an offer to invest.

 


This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.


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South Africa Police Issue Arrest Warrant for Fraud-Accused Crypto Trader

Reports from South Africa say the country’s police have now issued a warrant for the arrest of Sandile Shezi, a 29-year-old cryptocurrency trader. The warrant was issued after one Allan Ledwaba, an investor with Shezi’s Global Forex Institute, accused the cryptocurrency trader of swindling him out of more than $33,000 (R500,000).

Using Supercars to Woo Victims

According to a report by City Press, Ledwaba’s interactions with Shezi began soon after he attended one of the latter’s seminars where attendees were taught forex trading. Ledwaba alleges that he was shown a “trading account” belonging to Shezi which had over $5.9 million. The report adds that Shezi’s Ferraris and Lamborghinis were also used to entice Ledwaba.

Having been convinced by Shezi’s pitch, Ledwaba went on to procure a $33,000 loan from his father, which he invested in the crypto trader’s company. However, soon after investing, Ledwaba says he became suspicious. The report quotes Ledwaba explaining:

The agreement was that he would trade the money for me, and then every year he would give us [a] profit and then the full amount we had invested thereafter. But I became suspicious when I researched the name of the law firm used to draw up our contracts. I went to the law firm and spoke to the director, who said that they did not have a relationship with Sandile.

To back his fraud allegations, Ledwaba claims that since investing with Global Forex Institute in 2016, Shezi has only paid him a profit of just over $2,600. Ledwaba adds he has since sold the motor vehicle which Shezi bought for him for “company branding purposes.”

Monthly Dividend Payout

The report also states that a different investor — only identified as a former Limpopo school principal — was convinced by Shezi to “resign from his job and invest his pension payout to make even more money.” However, a few months after investing nearly $67,000 in 2019, the former principal claims Shezi’s company began defaulting on monthly dividend payouts. After asking for reimbursement, the former principal claims he only received just over $6,700.

Meanwhile, the City Press report also quotes Shezi’s lawyer, Lloyd Moonean, who accuses Ledwaba of defaming his client “on social media to the extent that our client received numerous concerns and complaints about the same.” The lawyer also accuses Ledwaba of breach of contract after the latter sold the vehicle which had been earmarked for branding purposes.

What are your thoughts about this story? Tell us what you think in the comments section below.

Nigerian Vice President Says Current Naira Exchange Rate ‘Artificially Low’

Nigerian Vice President Yemi Osinbajo recently warned that the country’s official naira exchange rate of N411 for every dollar is artificially low. This exchange rate, according to Osinbajo, discourages foreign exchange entrance into the country.

Naira Exchange Rate Must Reflect Realities of Market

Consequently, Vice President Osinbajo says he wants the Central Bank of Nigeria (CBN) to allow the naira to “reflect the realities of the market.” As a report by The Cable details, Osinbajo also wants the CBN to rethink its foreign exchange management strategy. He explained:

We can’t get new dollars into the system, where the exchange rate is artificially low. And everyone knows by how much our reserves can grow. I’m convinced that the demand management strategy currently being adopted by the CBN needs a rethink, and that is just my view.

Still, Osinbajo suggested that any such reassessment should only be done when the CBN governor has time to address this issue.

Naira Depreciation

Since the first half of 2020, the naira has continuously depreciated against major currencies like the U.S. dollar and the British pound. At the time of writing, the official naira to USD exchange rate stands at just over 411 for every dollar. This exchange rate is nearly 40% lower than the parallel market rate of 570 naira for every dollar.

Despite this discrepancy between the official rate and the black market exchange rate for the naira, the CBN has so far refused to devalue the currency. Instead, the central bank has gone after individuals and companies that are accused of fueling the naira’s slide.

In the meantime, Osinbajo warned the CBN against meddling with the fiscal part of the economy. However, should the need for such intervention arise, the CBN should only act when it has “the full cooperation and consent of the ministry of industry,” Osinbajo stipulated.

Do you agree with the Vice President’s naira sentiments? Tell us what you think in the comments section below.

Bitfarms Starts Construction of Mega Bitcoin Mining Farm in Argentina

bitfarms

Bitfarms, a bitcoin mining company, announced last week that construction is underway for a mega bitcoin mining farm in Argentina. The facility, which is designed to accommodate 55,000 miners, will be finished by next year. This is yet another signal that mining companies are looking for new areas with favorable conditions and cheap energy to migrate to, including places like Texas and El Salvador.

Bitfarms Expands to Argentina

Bitfarms, a Nasdaq-listed bitcoin mining company, announced it started building what will be a mega bitcoin mining farm in Argentina last week. The company says this facility will be able to power thousands of miners with power secured through a contract with a private power company. The farm will provide more than 210 megawatts of infrastructure capacity for the company, which reported having a mining power of 1.4 exahash per second in September.

About the construction, Emiliano Grodzki, CEO of Bitfarms, stated:

Our new high-production facility in Argentina, which is expected to accommodate over 55,000 miners upon completion, will greatly expand our capacity and global footprint.

Grodzki noted this facility will help the company achieve its goal of eight exahash per second by the end of next year.

Argentina’s Favorable Conditions

Grodzki also pointed out the reasons why the company chose Argentina. The farm will be constructed in warehouses inside the power company providing the energy, creating a great location for Bitfarms. Bitfarms signed an eight-year, 210 MW deal that secures power provision at a very low price. Grodzki explained:

The Argentina facility is planned to produce Bitcoin using power at the attractive rate of just US 2.2 cents per kilowatt hour, substantially reducing our already low cost of mining Bitcoin.

The facility is already under construction with an Argentinian company called Proyectos y Obras Americanas S.A. (“PROA”), which will lay the electrical structure needed to power the installation. Bitfarms is just one of the mining companies seeking new locations offering favorable conditions for expanding, and Argentina is on that list, mostly due to its abundant and cheap energy in certain regions. Bitfarms took advantage of this, choosing a region where energy is plentiful and demand is low. Other companies could follow suit in the near future.

What do you think about the Bitfarms mega bitcoin farm construction in Argentina? Tell us in the comment section below.