Currently Venezuela has been experiencing an intense economic hardship due to a hyperinflation, their situation is classified as the worst adversity in the country’s history. Venezuela’s instability is affecting citizens which now are barely able to afford their basic needs. As an alternative for the money instability, people are investing in Bitcoin mining and other digital currencies. Bitcoin mining is rapidly growing in the country since it is more affordable than the majority of basic goods. The activity has been classified as an positive alternative since it can provide the miners with around $500 per month, which is enough money to consume their basic necessities.
In the Bitcoin mining activity users elaborate computations to produce new links in the Bitcoin Blockchain. This process consumes a lot of energy, but it is not a problem for Venezuelan miners since electricity has a low cost in the country, if anything it is another incentive for Venezuelan’s to mine digital currencies.
Government authorities are not pleased with the mining; they consider it an illegal activity in the country because of the absence of cryptocurrency laws to regulate mining. Therefore, they started to crack down mining activities by arresting miners based on charges that are not verdict. The result of the government’s crack down on mining has led the crowd to either invest quietly or start operate with Ethereum and Zcash, which are the known Bitcoin rivals.