In Venezuela, the regional authorities have shut down the power supply to Bitcoin miners in the state Carabobo. They have suspended all power supply to registered miners in the state. No answers were given by the authorities on why they took such a decision. But reports suggest that the primary reason for the same could be the high amount of electricity consumption by the mining operations in the country.
Bitcoin miners fall short of power supply
Bitcoin mining does consume a lot of electricity, so it’s understandable why the authorities put a brake on providing power supply to these miners. The usage of electricity of miners is so much that the electricity grid is getting affected and other users too. In that case, the authorities didn’t have much other option, rather than shutting down their operations. But do note that the authorities do not plan to leave the Bitcoin miners hanging in the situation.
The authorities are planning to work in order to make it easier for miners to continue their activities. As of now, no solution has been worked out yet but very soon they will come up with something. This was reported by Criptonoticias who has been working with Sunacrip, the crypto watchdog of the country.
Mining in Venezuela
If you are wondering that the reason that power access was taken away from miners were the illegal nature of the same in the country, you are not right. The entire mining industry in the country is a big and legal entity. They have passed laws to make sure that miners acquire a license before they start mining. At the same time, they are also required to keep their mining data of at least 10 years.
The power supply cut could be seen as a threat to the industry and more miners might stay away from the government’s sight. Even though the authorities are pushing that more miners get a license it will be difficult if the authorities take such harsh steps.
What are your thoughts on the fact that authorities shut down the power supply to Bitcoin Miners? And do you think whatever the case is the action was justified? Let us know in the comments below. Also, if you found our content informative do like and share it with your friends.