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Crypto mining operations soaring in Brazil due to COVID-19

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  • Crypto mining has become an alternative source of income for Brazilians in such a situation when unemployment is soaring
  • A large growing number of Brazilians are observed turning to cryptocurrency mining 
  • In Q1 2021, Brazil has alone imported 106 million worth of GPUs
  • The majority of power is generated using renewable resources in Brazil, which makes the activity of digital assets miner more eco-friendly

Crypto mining operations are being considered a matter of concern due to their environmental impacts. Since the COVID-19 pandemic spread globally, several news of deaths has arisen from several countries. Brazil is one of the countries listed in terms of hardest hit. Due to the pandemic, with a rise in deaths, the economy declined by more than 4%, which increased unemployment in the country.

The rise in unemployment and economic uncertainties tend several citizens to find alternative sources of income. Hence, the factors resulted in a spike in the growth of cryptocurrency mining operations. 

Brazilians are turning to crypto mining

The basic needs required for a living are most precious in this world. When people lack to fulfill their basic requirements of living, they begin to search for any alternatives. Similarly, in Brazil, low and no income has pushed the residents to find new ways to get basic requirements.

According to a recent report revealed by Portal do Bitcoin, a growing count of residents sees Bitcoin mining as an alternative source of earning. The report also concluded that Government data that showed a boom in hardware imports and electricity consumption had confirmed the news.

Social pages and channels promoting cryptocurrency mining

Moreover, several Facebook posts were found explaining mining pools and processes to mine cryptocurrency. The social channels are helping promote the minting process across the country. On the other side, it was also observed that Youtube tutorials had attracted hundreds and thousands of views.

Can home Bitcoin miners earn enough?

Cryptocurrency mining difficulties are soaring as such assets are getting mainstream adoption. Several crypto tokens miners are acquiring more mining rigs to participate in the hash rate. However, such firms are using a large count of equipment to mine a block and earn. Following the scenario, many doubt whether minting crypto assets from home is worth it.

According to Expedito Felipe, a 34-years old Piumhi student, profitability from mining operations varies. He explained that he began minting Ethereum (ETH) in January to share an idea of such income. Felipe had invested about 47k reals ($9k) in acquiring equipment for such operations. The Piumhi student earned approximately 3k to 5k reals ($600-$900). And in terms of expenditure, Felipe had to pay about $100 for electricity consumption. 

Without exact figures, it is challenging to observe the actual dimension of the earning method. However, few detailed indicators claim that the source is burgeoning.

Brazil has participated in the hash race

According to José Guilherme Silva Vieira, Economics Professor at the Federal University of Paraná, returns between income and expense propels interest. The professor explained, expenses are the acquiring of equipment and electricity charges.

However, graphics cards are an essential element for home mining activity. And Brazil has registered a large count of imports in Q1 2021. The Brazilian Ministry of Industry revealed that the firms in the country had imported GPUs worth 106 million reals ($20 million).

Source: TheCoinRepublic

Hence, following the scenario in Brazil, it seems the majority of the population is turning to cryptocurrency mining.

Is home Bitcoin mining safe for the environment?

Miners verify transactions and mine a block to sent that on the blockchain. For mining a block, they receive mining rewards which are their primary income. However, digital assets like Bitcoin use a Proof-of-Work consensus which has been considered impacting the environment as it uses heavy power. 

Around the globe, many have shown concerns about the mining activity in our environment. Several famous personalities like Elon Musk and Bill Gates have also shown problems.

In contrast, whether miners are continuing their operations on fuel-based power, whether from home or firm, the process could impact our ecosystem. However, if the process use renewable sources to generate power the carbon footprint vanishes.

Source: TheCoinRepublic

In the current scenario, a large part of power in Brazil is being produced from renewable sources like wind and Hydroelectricity. Among such sources, Hydroelectricity is a significant source of power, as Brazilian rivers have power potential. According to the National Energy Balance of Brazil, about 70% of the country’s electricity is being produced from hydroelectricity plants. Hence, the power reports have clarified that mining cryptocurrencies from home in Brazil is not a matter of concern. 

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