Bitcoin miners are disconnected in Venezuela, daily loss can equal twenty times the country’s minimum wage

According to information released to the Cointelegraph by a group affected by the restrictions, since last weekend, regional authorities in Carabobo, in central Venezuela, have shut down Bitcoin miners who make a living at the regional entity.

According to the information received, the reason for this decision is due to the high consumption of energy in an area that is undergoing unplanned daily rationing due to the critical situation of the electricity distribution system in the central-western region of the country.

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The affected miners, who decided to remain anonymous to avoid retaliation against them; They indicated that the order for this shutdown comes directly from the “upper echelons” of the Ministry of Popular Energy for Electric Energy of the Venezuelan government, commanded by G / J Néstor Reverol.

primary elections

The sources also pointed out that the ‘forced rationing’ against mined workers appears to be due to political reasons, linked to the holding of primary elections in the Latin American nation last weekend by the ruling party in government.

During this weekend, the ruling party United Socialist Party of Venezuela (PSUV) held the primary elections to choose the official candidates that will be measured in the upcoming elections in November, where regional and local popular representatives will be chosen.

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Considering that Carabobo, and much of the country’s Midwest, have an energy deficit due to the lack of maintenance of the electricity distribution lines in the region, which causes constant blackouts in various parts of the state on a daily basis. The need to implement the electricity system during electoral elections was a ‘necessity’ to guarantee the electronic transmission of votes to the central entity, the National Electoral Council (CNE).

For this reason, and given the high consumption generated by the miners in the region, they were turned off to avoid the instability of the electrical system and thus guarantee the success of the elections.

For the time being, the scope of the measure is not known and whether it will be from now on a rule to be applied to the detriment of mined workers. For now, Sunacrip, the governing body in the area of ​​crypto assets in the country, and Corpoelec, the governing body on energy issues, will seek to reach a solution this week in favor of injured parties.

considerable losses

The losses for an average miners in Venezuela could represent a serious blow in terms of revenue due to unscheduled forced shutdown, even more so if we take into account that some amateurs who have been in this sector since 2011 (date when the first miners in groups are known as Bitcointalk), have fully dedicated themselves to this activity as their main source of income.

Considering that the Bitcoin miner “Whatsminer M30S ++ 110T” is one of the most powerful in the market for the PoW algorithm and that the cost of electricity in the country is one of the lowest in the region, the average daily loss of each unit it would be around just over $35 dollars, twenty times the basic minimum wage in the country for a worker in Venezuela.

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