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Bitcoin mining companies are beginning to feel the side-effects of a steep dip in the Bitcoin price in crypto markets. Meanwhile, the companies also believe that the problem of miners that needs the most attention is the falling Bitcoin prices.
The company is affected directly because of its holdings. It longer has its unicorn status, as it is at a sub $500 million currently.
Damian Polla, Latam General Manager at Bitfarm, in an interview, said that the dipping prices of Bitcoin are the biggest challenge that the crypto sector is facing in the short-term, both in Argentina and globally, which increases operating costs and reduces revenues.
Polla also outlined that the falling prices reflect the development of the cryptocurrency market, which he certified as being “mainstream ” in global markets because of its correlation with other traditional equity indexes.
The firm that contributes to a quota of 1.5% of the global Bitcoin hashrate has made some significant investments in Paraguay and Argentina. As of now, the company is building a Bitcoin mega farm in Argentina that would be designed in such a way that it will host 55K miners with a power capacity of 210 megawatts. Bitfarms, unlike other firms in the country that are doing layoffs as a plan to curb the announced forthcoming economic phase, is currently having the opening 200 jobs with the construction of the above-mentioned mining facility.
Polla also disclosed the factors that made Bitfarms put its investment in the country rather than taking them elsewhere. Further, he elaborated that for an investment of this type, Argentina is quite a good location since it provides quality human resources, a very active cryptocurrency ecosystem, and competitive energy prices. The crypto ecosystem in Argentina is a leader in the region despite the economic ups and downs.
Though the country does not plan to make new investments in the area, Polla revealed that Bitfarms is always on the lookout for evaluating new opportunities in Latam, Argentina, and even the U.S.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
