Frequent blackouts in many parts of cuba Allegedly making cryptocurrency mining rigs impossible to run – and mining unsustainable.
Many Cubans have lost thousands of dollars that they invested in crypto mining equipment and graphics cards, according In a report from Kubenet.
Many young Cuban entrepreneurs see crypto mining as a way to earn these assets, which will provide them with valuable benefits, including online purchases abroad, as well as sending payments for remittances and services.
However, according to one such investor, the renewed energy crisis and blackouts in Cuba have had disastrous consequences for the industry, adding that,
“Mining becomes more difficult or nearly impossible every day, as deciphering a block can take days to turn on equipment without disrupting the process, and that is impossible in Cuba today.”
Redel Gonzalez, a young computer scientist and a miner, further added that he, and “many others, had invested a lot of money in cryptocurrency mining equipment that is not cheap,” but that,
“With the advent of blackouts, it is impossible to sustain cryptocurrency mining in Cuba.”
Blackouts are not a new issue for Cuba and have been the cause of several protests. Livan Aronte Cruz, Minister of Energy and Mining, said, as retuars informed of In July this year, that “the operating reserves we have in the electricity system are insufficient to meet demand, making an impact on service inevitable.”
alternatives are neither profitable
Mining consumes a lot of electricity, and some explored alternatives such as battery-powered voltage converters — however, so far “variants are not profitable or simply not sustainable,” the report found.
Miner Eduardo Gomez, who claims to have invested more than $5,000, said he didn’t give up at first and kept investing for several months, adding:
“I thought the solution was to buy a power plant and then came the big fuel crisis. Sometimes I would spend the whole day buying some gasoline and in the end, the blackout increased with its price and the number of hours it took to do it now. Wasn’t profitable.”
So what is the option left? Cubanet’s source said that miners tried to sell their equipment below value, while some even tried to hide equipment in “plants in state-owned workstations” at the risk of being caught and punished.
“Many Cubans, like me, have lost their money and try to make ends meet by selling the equipment for less than it was worth. Others moved their mining rigs to their work stations, where there is a power plant, and They’ve hidden them there; but they’re taking a risk.” Everything will be confiscated if they get caught, Gomez said, or who knows what they might do with them.
no electricity no internet
Another thing that is essential for mining but is not being found in Cuba is uninterrupted internet connection.
kubenet informed of That, 3G and 4G internet services, voice calls and SMS services are being affected due to frequent power cuts since last Tuesday.
Cuban Telecom Company (ETECSA) reportedly said that it is “facing technical problems and that is the reason there is instability in all networks, some radio bases are out of service.”
However, the report cited a note published in the official media Adelante, which said that there is a “fluid shortage of electricity”, also indicating that the blackout “has a direct impact on the quality of telecommunications services, as the base The station and cabinet opt out of energy backup during power failure.”
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