
The Secret, Dangerous World of Venezuelan Bitcoin Mining - gasull
https://reason.com/archives/2016/11/28/the-secret-dangerous-world-of
======
tedmiston
> But the main factor driving Venezuelans to take up bitcoin mining is a price
> control put in place by the socialist government: Electricity is virtually
> free.

> Since bitcoin mining is a process, in effect, of converting the value of
> electricity into currency, Venezuelan miners are engaging in a form of
> arbitrage: They're buying an underpriced commodity and turning it into
> bitcoin to make a profit.

> In the process, they've gained access to a currency with far more purchasing
> power abroad than the government-issued bolivar

The grueling details of ongoing humanitarian crises aside, this bit is an
interesting side effect.

------
findyoucef
$1200 a day? Where did he get the capital to invest in enough hardware to
produce $1200 of bitcoin?? That would cost somewhere around 300k for the
hardware alone, if not more.

~~~
razakel
It reads like that "you'll never guess how this single mom earns a fortune
working from home" spam.

Fascinating article, though I dislike the specious critique of socialism
that's been shoehorned in there, though I suppose it is reason.com...

