Home
News
Proposed legislation for a Bitcoin mining ban due to more power consumption and power theft may result in significant economic losses to Paraguay.
On April 4, a draft bill by the Paraguay legislation sentencing a ban on Crypto or Bitcoin mining due to excessive power consumption and theft. However, the proposed bill is anticipated to impact Paraguay’s economy, with losses exceeding $200 Million annually.
How Bitcoin Mining Ban Can Affect Paraguay’s Economy?
A bill from Paraguay’s legislation on April 4, stirred the crypto community. The drafted bill involved details of a ban on Bitcoin mining in Paraguay to alleviate strain on the national power grid.
According to the bill, Crypto and Bitcoin mining resulted in high power consumption as well as increased power theft and grid disruptions. The bill will last for 180 days or until any new regulations are proposed for energy consumption. Another factor that can replace the bill is the assurance of sufficient energy supply by the national power grid operator.
However, the news of the Bitcoin mining ban was undigestable for the co-founder and chief mining strategist of Hashlabs Mining, Jaran Mellerud. According to Mellerud, the bill will have a direct impact on Paraguay’s economy and may result in a $200 Million loss annually.
With a small population of 6.8 Million and a GDP ranking of 94 worldwide at $41.7 Billion, Paraguay benefitted from Bitcoin mining, mainly in its trade balance.
“Bitcoin mining has provided a positive contribution to Paraguay’s trade balance, and a ban could dent the economy”, said Jaran Mellerud.
Mellerud provided a detailed justification for the operating expenses of legal miners. According to Mellerud, the operators are paying around $0.05 per kWh and collectively using 500 MW of power, on an estimated basis.
Furthermore, the mining firms need to register and gain approval from the Ministry of Industry and Commerce. Additionally, many examples are already following the proposed rules and regulations.
Marathon Digital Holdings, one of the biggest, most energy-efficient, and most technologically advanced Bitcoin mining firms has already begun deploying noteworthy resources, involving 27 megawatts near the Itaipu hydroelectric plant.
Moreover, the Itaipu dam is accomplishing Paraguay’s energy demands, attracting Bitcoin miners to pay high rates for Bitcoin mining. Additionally, the Alto Paraná region, home to Itaipu experiences annual losses of over $60 Million.
As per the lawmakers, Paraguay has experienced 50 cases of interrupted power supply linked to cryptocurrency miners, illegally consuming electricity sources since February alone. The National Electricity Administration of the country estimated a loss of over $94,900 in cryptocurrency mining operations.
Bitcoin’s Current Performance
BTC is currently trading at $71,977.84, after a surge of 3.71% intraday with a market cap of $1,416,199,214,080. The 24-hour volume of BTC is $29,816,667,585.
Additionally, the maximum supply is 21,000,000 BTC, the total supply is 19,676,762 BTC, and the circulating supply is 19,676,762 BTC which is 93.70% of the total supply.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
