Bitcoin mining in Venezuela increasingly frenzied inflation into main drive
Venezuela is suffering from the most serious since the Republic of Weimar since the inflation, the price of a big Mac is about half a month’s salary. The annual inflation rate is expected to reach 160%. Life is like an old newsreel: long lines, empty shelves, cashier and piles of bills.
In order to survive, tens of thousands of Venezuelans to bitcoin mining. They put the computer processing power used in the block chain, will eventually get bitcoin as a reward. In order to provide more data processing capabilities, and earn more bitcoin, the operation is called “miners” computer. Bitcoin mining is profitable, depends on two major factors: market value and electricity bitcoin. Electricity is most Venezuelans can afford in President Nicholas Maduro’s socialist regime, electricity is almost free. A business with several bitcoin miners who can earn $500 a month. This in today’s Venezuela, is a small fortune, enough to feed a family of four.
In this case, the miners began to play ATM role. The professor and students in bitcoin mining. Even in non mineral company, it has also become a common currency: peer-to-peer transactions, allowing everyone to buy and sell coins from the owner.
But recently, Maduro began to hit bitcoin mining business, apparently they found a political scapegoat — he just said those who seek to profit from inflation of the capitalists “parasites”. However, bitcoin trading is permitted. Just as Maduro is aware of the encrypted digital currency can bring the country together.
Since Venezuela has about encryption of digital currency law, police arrested by fake bitcoin mining operators. Their first target is JoelPadron, he has a courier company, and through bitcoin mining to increase revenue, he was accused of theft and possession of energy contraband, and was detained for 14 weeks. Since then, other bitcoin platform also seized — in many cases, corrupt police for personal gain. A result, many people have to stop bitcoin mining. But “Rodrigo founder BlinkTrade”? Souza said: bitcoin mining benefit is still a great temptation for other people, people have not stopped bitcoin mining.
In fact, Venezuela’s most resourceful miners are turning to a new inflation busting ETH. Higher profit margins at the same time, the risk is lower. The principle of bitcoin mining and mining are similar: Ethernet square is the use of electricity for free to get money, a Venezuelan miner said: bitcoin mining method can more easily obtain cash, because only free software and personal computer graphics. Any police officer may think miners is just an ordinary computer.