Bitcoin miners were hit hard in May, after the Financial Stability and Development Committee of the State Council of China tried to establish more control over Bitcoin by defining it as a financial risk. Therefore, alternative mining habitats to China came to the fore. Of these, the most likely possibility seems to be Paraguay in Latin America.
Given the Chinese Communist Party’s policy of promoting and popularizing the digital yuan, the Bitcoin market, especially Bitcoin miners, is under great pressure and is looking for places to mine abroad. The previous day, CNBC reporter Eunice Yoon published a visual showing that many mining machines from Guangzhou city in China were on their way to the USA.
The governors of states such as Miami and Texas, who want to attract Bitcoin miners to the USA, are working with great devotion. On the other hand, after El Salvador, which made the biggest ‘revolution’ in this regard and made Bitcoin the official currency, countries such as Panama and Paraguay are ambitious to legalize Bitcoin.
Is Itaipu Hydroelectric Dam advantage for Bitcoin mining?
Paraguay is home to the Itaipu Hydroelectric Dam (IHD), located on the border with Brazil. IHD is the world’s second largest hydroelectric dam with an output of 14 gigawatts, providing Paraguay with 90% of its electricity and 15% of Brazil’s needs.
Paraguayan politician and congressman Carlitos Rejala has announced that the country will create a Bitcoin (BTC) legislation in July. Given the importance of IHD for the country, it may want to use that power in Bitcoin production. While he has kept certain Bitcoin plans secret for now, it is almost certain that Paraguay will play a role in the Bitcoin revolution.
On the other hand, Bitcoin’s impact on the hash rate dropped sharply at the time of the announcement. In mid-April, it reached an all-time high of around 180 million TH/s. But since then, the latest data shows that the hash rate has dropped to November 2020 levels of around 125 million TH/s. Hash rate is a measure of the processing power of the Bitcoin network. The higher the hash rate, the more secure the network. Some also took the hash rate as a measure of the health of the network.
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