By: The Signal
Latin America is famous for its gold-laden soil which has captured the hearts of international investors. The foreign investors then used the divide and conquer rule to claim large portions of gold until these nations gained independence. Since after their independence, the investors change their ways.
The lure of Latin America’s mining sector remains just as strong as possible. It has the planet’s largest reserves of copper, lithium and silver with plenty of gold to boot. While meeting modest local demand, it has less than 10% of both world population and GDP which makes it a natural exporter.
The gold rush of the 19th century and the determination of the mining pioneers were the catalysts for Latin America’s economic boost in the early 19th century. Fast forward to the 21st century, data has become the new hot cake, data mining is the new trend. When I talk about data mining, I mean bitcoin mining.
What is Bitcoin Mining?
Bitcoin Mining is the mining of bitcoin a cryptocurrency based on blockchain. This new technology is a digital, immutable, decentralised, encrypted, and sequential ledger. The chain of command is not controlled by any central body but by different computer networks that verify the information saved in the component block.
This crypto coin originated from a mining process where miners compete to solve hard mathematical equations using computers that run on an algorithm. Whoever solves the problem in under 10 mins and validates the chain with 51% confirmed by other miners become the winning miner. The reward for winning the mining session is being paid in bitcoin.
What’s necessary for mining bitcoin?
To mine bitcoin requires some capital just like gold mining some centuries ago. The required capital for mining bitcoin is an Antminer S9, plug and play hardware, required energy to run the computers day and night and a great deal of luck to figure the solution based on the computer capacity.
The competition for bitcoin these days is brutal and inefficient without economies of scale. Unlike gold, the total number of bitcoin you can mine is fixed. Digital technology is irregular, which makes it beneficial for people who are looking for solutions to their issues.
For example, Venezuela is a country that’s suffering from a weakened currency and inflation. To solve their issues of inflation and a weakened currency, people believe Venezuela could be the first country to adopt bitcoin as their official currency because the country has some of the best factors to become a bitcoin mining haven. However, the indiscriminate use of energy by the miners caused issues between the miners and the authorities.
As things begin to evolve all around, the bitcoin fever continues to spread and attracts other types of miners. With new people getting involved in the business, this can show you that there are people who are interested in getting solutions to pressing financial issues.
With the growing demand for bitcoin and other cryptocurrencies, a lot of investors are beginning to feel uneasy about trading in certain cryptocurrencies due to the rise and fall. Crypto mining is the key to blockchain success which has provided some alternatives to fiat currency.
Countries in Latin America are turning to crypto as a means of escaping their sinking economies and weakening currencies. Crypto has evolved in those societies that any moment we would see countries from those regions legalising its use.