Venezuela Cracks Down on Bitcoin Mining Amid Power Grid Strain
The Venezuelan government is taking stern action against Bitcoin mining, citing the strain it places on the country's already fragile power grid. The Ministry of Electricity has launched a 'Special Plan for Load Control' to disconnect mining farms, while the governor of Carabobo state has temporarily banned mining activities. This crackdown follows the seizure of over 11,000 mining devices and the shutdown of a large mining farm.
Bitcoin mining's popularity in Venezuela is due to its low electricity prices, which are subsidised by the government. However, this has put immense pressure on the nation's power grids, which are not equipped to handle the increased demand. Power outages and network problems, long-standing issues in Venezuela, have been exacerbated by crypto mining. The presence of mining farms with cheap electricity can quickly overwhelm weak grids, leading to shortages and further outages. The government's 'Special Plan for Load Control' aims to mitigate this by disconnecting mining farms from the power grid. In a significant move, a large mining farm has been shut down, and over 11,000 mining devices have been seized by authorities to control electricity consumption during the severe energy crisis.
The Venezuelan government's actions highlight the unsuitability of the country's power infrastructure for large-scale Bitcoin price usd mining. Despite its rich energy sources, Venezuela's weak grids are not equipped to handle the demands of crypto mining. The crackdown, including the temporary ban in Carabobo state and the seizure of thousands of mining devices, signals a serious effort to manage the energy crisis and prevent further power supply issues.
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