China always led Bitcoin mining until the first half of 2021. However, since then, the Asian country has restricted activity involving cryptoactives and lost its position to the United States.
Currently, the United States is the world leader in bitcoin mining. The country accounts for about 35% of all bitcoins mined in the world. But a new cryptoactive mining hub could emerge in South America.
According to News Bitcoin, Paraguay could become a significant bitcoin miner in the coming years. Rumors indicate that at least six Chinese groups are interested in investing in bitcoin mining in Brazil’s neighboring country.
But why is Paraguay attracting mining activity? Paraguay also owns the Itaipu hydroelectric plant. The binational complex was built in partnership with Brazil, where each country has the right to 50% of all electricity generated.
However, while Brazil consumes all its share of the electricity produced by Itaipu in Paraguay, there is a production of excess electricity. In other words, with energy to spare, the South American country can offer surplus production to bitcoin miners.
Paraguay can still facilitate the entry of miners into the country, with incentive laws and a political stance in favor of cryptoactives. In a statement released recently, Shanchun Huang, CEO of Future Fintech, comments on the expansion of the mining business in the country.
Huang says the company is studying the technical feasibility of installing a large bitcoin mining farm in Paraguay. In this way, Future Fintech can have a sustainable mining farm by using the electricity produced through the Itaipu hydroelectric plant.
Future Fintech is also analyzing the feasibility of using electricity produced by Paraguay and does not rule out some political support to install a bitcoin farm in the region.
“We plan to evaluate this development opportunity in Paraguay carefully. We will work with our local consultant to review Paraguay’s hydroelectric power and clean energy resources, locations for mining farm development, and the preferential political treatment we may receive for our capital investment.”
While it has not been transformed into a cryptoactive mining hub, the ranking is still led by the United States and Kazakhstan, more than 18% of all bitcoin mining globally.
Source: Bitcoin News
