The moratorium on mining in China prompted miners to look for other countries in which they could continue their activities. I took the promises to reduce costs to Argentina. However, the country’s government has now used the new rates for crypto miners in the province of Tierra del Fuego.
The Argentine Minister of Energy published and announced the Ministry of Finance Resolution 40/2022, which cancels the government’s energy support for cryptocurrency mining. The new tariffs make mining in the country four times more expensive than before.
According to the regulations, the hourly and seasonal energy used by miners is intense and constant. For this reason, crypto mining creates “problems for the infrastructure of the concession area to which they are connected.”
The decision adds that because the activity is profitable and payment is available, crypto miners must pay energy prices “that are in line with the cost of supply.” He went on to say that it is not fair for miners to pay the same subsidized price as private users.
The new rules apply to miners based in Tierra del Fuego province, a place known for its cold climate, making it ideal for miners who need to regulate the temperature of their mining equipment.
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Meanwhile, a federal region in Russia called Irkutsk Oblast is struggling with increased energy demand for bitcoin mining. Due to the recently started mining activities, it is difficult for the region to maintain energy stability.
Although there are difficulties with energy prices, miners also face difficulties due to natural phenomena. A winter storm has caused a miner in Texas to shut down 99 percent of operations due to an expected increase in energy demand during the storm. This was done to reduce the burden on the state’s electricity grid.