Venezuela is now shutting down its power supply to crypto mining farms. Seizing 2000 Venezuelan crypto mining machines as part of an ongoing anti-corruption drive.
Venezuela Ministry of Electric Power has announced to shut down the power supply to cryptocurrency mining farms from the national power grid. This move aims to manage high energy demand and ensure reliable power supply for citizens.
Officials assert that these steps are crucial for fixing the inconsistent power supply shortage in the past few decades. Frequent blackouts due to power supply shortage was affecting the citizen’s living standard and a constant burden on country’s economic infrastructure.
Corruption within Cryptoassets?
Crypto mining shut down coincides with government’s campaign against corruption leading to arrest of several officials.
Joselit Ramírez, former head of National Superintendency of Cryptoassests (Sunacrip), had a connection to Tareck El Aissami, former Petroleum Minister. Aissami was charged with betrayal, stealing, misuse of influence, money laundering, and criminal association.
Action to Clamp Down Crypto Mining Farms?
Venezuela is clamping against cryptocurrency mining because citizens believe it to be a major reason behind the frequent power cuts in the country. Citizens have been facing these electricity crises since 2009. This had gotten worst since 2019 when there was a city-wide blackout for an entire week.
Rafael Lacava, Governor of Carabobo (state in Venezuela), has also urged the residents to report any illegal crypto mining operations to prevent further power shortages. He further added:
“If you, neighbor, see a house that you know, tell that person to turn off the farm, or else report it, because when they turn off the light, because you have to give light to a man so that he can earn some reales (money), you are left without electrical service.”
Rafael Lacava
This Government decision to cut out power supply represents a step towards the betterment of National Power Supply Grid and improves the residents living condition. While citizens are happy about shutting down of crypto farms, experts had a different view on this forced government action.
Experts blame poor maintenance and lack of investment in the electricity infrastructure causes the ongoing electricity crises.
High Electricity Requirement is one of the primary requirement in Crypto mining, this alone cannot be blamed against the usage of cryptocurrencies.
The evolution of other cryptocurrencies has significantly reduced in the newly circulating crypto coins today. Electricity should not dither new crypto investors to bet big on the crypto market. Investors, however should do their own research before investing because of crypto market being volatile.
Also Read: $3.5B Funds Invested in Bitcoin ETFs
