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ARGENTINA PUTS AGITATION ON A PROVINCE IN PATAGONIA WHERE MINERS TAKE ADVANTAGE OF ELECTRICITY TO MAKE BITCOIN

ARGENTINA PUTS AGITATION ON A PROVINCE IN PATAGONIA WHERE MINERS TAKE ADVANTAGE OF ELECTRICITY TO MAKE BITCOIN

Crypto mines are expected to consume about a quarter of all electricity needs in the province of Tierra del Fuego, including the southern city of Ushuaia, in the next few months until October, according to a report by Argentine government-owned electricity supplier Cammesa.


Local officials warn that crypto mines, as well as already weak energy infrastructure, are putting their power grid at risk of collapse. The provincial secretary for energy, Moises Solorza, told the Argentine newspaper Clarin that major cities in the province, including the capital Ushuaia, were "on the edge."


Argentina is among the top 10 countries in the world with the highest number of cryptocurrencies, according to the special website Chainalysis. Concerned about recurring financial problems and inflation of more than 50% a year, two-thirds of Argentine crypto investors say they do so to protect their money from reducing purchasing power, according to a study by Buenos Aires-based Wunderman Thompson.


Crypto mining companies had relocated to Tierra del Fuego, near Antarctica with the country's capital Buenos Aires, to benefit from the low cost of energy and control over the majority of the non-red tape industry. They also use low temperatures that help cool down crypto-mining equipment.


The Argentine government has funded the use of force for years, at a cost of nearly $ 11 billion by 2021, as a political strategy to mobilize popular support. However, rising costs instead of national currency have led President Alberto Fernandez's management to agree to cut funding as part of Argentina's $ 44 billion deal with the International Monetary Fund.


The IMF agreement, signed last month, also called on the government to "ban the use of crypto-currencies for the purpose of preventing money laundering, disorderly conduct and disconnection."



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