Venezuela is an important region in the cryptocurrency world. So far, consumers and corporations have shown a keen interest in cryptocurrency. It seems that situation may come to change fairly soon. Local sources indicate the government is confiscating any hardware related to cryptocurrency mining.
The Bitcoin Situation in Venezuela
Over the past few years, the financial turmoil in Venezuela has become more apparent. Its national currency is losing value fairly quickly. This has caused many different issues for both corporations and consumers alike. It seems even the issuance of the Petro cryptocurrency may not necessarily improve this situation anytime soon.
Desperate times often call for desperate measures. In the case of Venezuela, citizens are flocking to cryptocurrency mining. Given the rising value of Bitcoin, mining this currency has become more popular. As a result of the country’s access to cheaper electricity, mining Bitcoins seemingly makes perfect sense.
At the same time, this type of activity has also received a lot of negative attention. The Venezuelan government officially subsidizes all electricity in the country. Anyone using this resource to mine Bitcoin has become a target for legal repercussions. Various mining operations have been shut down in the past. It now appears this situation will only grow worse as more time progresses.
The Government Intervenes Yet Again
According to local outlet Noticiero Digital, things are not evolving in a positive direction. In fact, the Venezuelan government is confiscating any shipments related to cryptocurrency mining. This applies specifically to hardware being imported from other parts of the world. It is another crackdown on Bitcoin mining, albeit a very aggressive countermeasure.
Courier services have informed clients this measure has been implemented recently. As such, users are advised not to order any Bitcoin mining hardware outside of Venezuela. That creates a big problem, as buying or selling this equipment in the country itself is difficult, if not impossible.
For the time being, it remains to be seen what the reasoning behind this development is. Government spokespeople have not issued any official comment regarding this statement. As such, it remains unclear what the officials hope to achieve by taking this drastic approach. At this stage, it seems any cryptocurrency equipment will be confiscated. In the past, harsh action was taking against ASIC units. The new development puts GPUs, motherboards, and even power supplies at risk of confiscation as well.
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Author: JP Buntinx
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