Is it possible to mine bitcoins in brazil?

Creation cryptocurrencies how bitcoin gave birth to a new activity called mining. But few really know. Bitcoin mining is the computational process required for new digital currencies to enter circulation. Mining ensures the security of cryptocurrencies by recording transactions against a cryptographic chain called a blockchain.

This is not common practice in all countries. Until the end of last year, the United States was the leader in mining in the bitcoin world, a total of 35 percent is mined. Kazakhstan was in second place (21%), Russia was third (13%). China once she was the absolute leader, in 2020 December. concentrated 53% of the entire process, but lost space due to restrictive measureswhich caused the miners to move to other nations.

This is an activity that is gaining weight year by year and is attracting more and more attention from investors and countries that want to be part of this market. The production and registration of cryptocurrencies is concentrated precisely in those countries that offer cheap electricity, easy equipment import and clear and attractive legislation..

Therefore, the question remains: is it possible to dig bitcoins in Brazil? ok the answer is not limited to yes or no, because like everything in life, it implies certain conditions.

To John Blount, CEO of IMF Minecraft Managamen, it is technically possiblebut this answer is followed by other questions: Is it worth it? Does mining make sense in this country?

The mining bitcoin was planned to require a lot of electricity. This is a way to remove incentives to cheat. Therefore, it is common for miners to settle where electricity is cheap and safe, as there is no risk of burst brakes. or eclipsesays the CEO.

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He also reports that mining is an activity that requires a lot of investment in equipment such as high-performance computers. In other words, very expensive instruments that require fiscal incentives or even local production capacity. Finally, no less important is the existence of legislation that regulates the sector and gives it legal certainty.

With these three main points in mind, we can say that Brazil has great potential for Bitcoin mining, but there is still work to be done to adapt to the necessary conditions to attract miners.“, continues the CEO.

John believes that the problem of this country is different:

We live in a nation that adapts to something new very slowly and bureaucratically. In any case, the first step has already been taken“.

Remember that May 26 The Senate approved Bill 4 401/2021, popularly known as the Cryptocurrency Regulatory Framework.. This PL provides service delivery guidelines active virtual and regulates the activities of supplier companies. Now the proposal must be approved by the Chamber of Deputies and get the President’s sanction to actually take effect.

In addition to the requirement to register platforms for buying and selling cryptocurrency assets (exchanges), legal recognition of the existence of the cryptocurrency asset class/blockchain will increase long-term investments. These programs can target both technology and industry-related companies, such as promoting cryptocurrency mining and criminal prosecution of illegal and fraudulent activities.

Once published in the Official Gazette of the Federation, the regulatory framework will contribute to the two points mentioned above: legal certainty and the ability to reduce equipment import/production costs through government incentives. But cheap energy will continue to be in short supply.

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In this case, the mining market itself can help attract investment to the sector. For those who don’t know there are hundreds of PCHs (Small Power Plants) that have excellent generation capacity but are far from consumption centers and require tens of kilometers of communication lineswhich can often be more expensive than the plants themselves.

Since the mining of cryptocurrencies is carried out at the source of generation, the construction of PCH becomes possible, since they guarantee the consumption of the generated energy from the first minute.. Thus, connecting the electricity produced here to the national interconnection system may be suitable immediately or, in the worst case, more planned in the future and with reduced costs over time.

Finally, it is possible to mine bitcoins in Brazil, but the conditions still do not give the country the competitiveness it needs to compete with other nations. After all, what’s the point of working hard on low profit margins and legal insecurity when I can have much higher margins with the same effort? But once these hurdles are cleared, we will be ready to answer the question as follows: yes, it makes sense to mine bitcoins now Brazil,” concludes Juan.

Disclaimer: The information and/or opinions contained in this article do not necessarily reflect the views or editorial line of Cointelegraph. The information provided here should not be considered financial advice or investment recommendation. Any investment and commercial move involves risk, and each person should do their due diligence before making an investment decision.

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Investments in cryptocurrency assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed at or available to investors in Spain.

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