Bitcoin mining has provided a “positive contribution to Paraguay’s trade balance,” and a ban could dent the economy, argues Hashlabs Mining’s co-founder.
But a ban on lawful miners operating in the region could prove costly for the South American country, according to Hashlabs Mining’s co-founder and chief mining strategist Jaran Mellerud, who recently spoke with Cointelegraph:Banning bitcoin mining could cost Paraguay more than $200 million a year, assuming the country has 500 MW of legal miners paying $0.05 per kWh in operating expenses.”
A large amount of this excess electricity has historically been exported to Brazil at low prices. However, Mellerud noted that a wave of Bitcoin miners has swooped in at slightly higher prices in recent months. The country’s National Electricity Administration estimates each cryptocurrency mining operation has caused damages and losses up to $94,900 and that total annual losses in the Alto Paraná area — where the Itaipu power plant is based — could be up to $60 million.