Bitcoin te South America: Why Venezuela Has an Active Bitcoin Mining

Bitcoin use te Venezuela and Brazil is enhancing, but the populations use the currency te different ways.

According to Rodrigo Souza, core developer at Blinktrade , the exchanges ter both countries have more than Ten,000 registered users.

At a glance: Brazil

The Brazilian exchange is FoxBit. FoxBit is a result of partnership inbetween FoxBit Servicos Digitais and BlinkTrade Inc, a technology provider for Bitcoin exchanges around the world.

According to Blinktrade, the majority of bitcoin users ter Brazil are either using bitcoin to invest ter the technology, to trade for profit, or to purchase bitcoin ter order to trade them for U.S. dollars, often because they have a bill to pay te American dollars or project to travel).

Ter Brazil, there are four other bitcoin exchanges leading Bitcoin use te the country. The people of Brazil are generally more skeptical and nosey about Bitcoin than those te Venezuela, according to Souza..

“As of now,” says Souza,”Brazilian regulators said that they won’t regulate Bitcoin because regulating also means that the government is placing a stamp of approval, they also believe the technology is presently ter its early stages and doesn’t represent a risk to the financial system.”

The central bankgebouw of Brazil te the past has said that bitcoin currency is too volatile and not backed by any government. Additionally, the Brazilian tax authorities have stated that traders should announce their bitcoin and should report any capital gains.

Of the five largest Brazilian banks, three of them haven’t announced their position on bitcoin. The two other banks are very against bitcoin, and have shut down or blocked handelsbank accounts for trading bitcoin.

At a glance: Venezuela

The Venezuelan exchange SurBitcoin is a result of partnership inbetween VK Inversiones/Vipples and BlinkTrade.

“Venezuelans on the other mitt, are a entirely different story. Ter order to understand Venezuela wij have to understand that our numbers only reflect Ten procent of what is going on ter Venezuela,” says Souza.

Venezuela is huis to a vibrant bitcoin community, where people often trade goods and services for bitcoin. “Bitcoin is generally viewed by Venezuelans spil a positive innovation,” adds Souza.

“Venezuela has much thicker problems to solve te their country than their Brazilian counterpart,” Souza said.

Venezuelan government officials have never communicated their stance on the technology, but Venezuelan law is very clear on its definition of money, and bitcoin doesn’t getraind te that definition. Bitcoin is considered property rather than money ter Venezuelan law.

SurBitcoin wasgoed approached by Venezuelan authorities under the allegation of illegal money exchange.

“Since Bitcoin is not considered money under Venezuelan law, wij were fine,” says Souza, “They did not take further act.”

Since the creation of SurBitcoin Exchange ter August of 2014, SurBitcoin has given fresh users 100 bolivares worth of BTC upon opening an account ter order for them to learn how the technology works. Te 2014, the 100 bolivars represented close $1.30. Today,15 months straks, SurBitcoin still provides users with 100 bolivares, but that amount is now worth $0.11. The average salary at that time wasgoed close to $250 vanaf month. The average salary te Venezuela is close to $20 vanaf month. Even ATMs ter Venezuela limit withdrawals to 20,000 bolivars, or about $22 USD at time of publication.

“But since the Venezuelan economy contains such strong price controls,” says Souza, “this also means they pay the cheapest electrical play bill ter the planet. Wij know a mining farm technicus who has close to 1 petahash of power and his electrical play bill is close to $20 vanaf month. The average electrical bill for 320kw consumption is close to 6 cents. This means that a person mining bitcoins with old equipment at huis makes more money than an engineer working 160 hours a month.”

This makes it a fruitful environment for mining bitcoin. Most bitcoin sold ter Venezuela are either mined ter Venezuela or sent by Venezuelans living abroad to help their families.

“I would say that Ten procent of our Ten,000 users are de-facto bitcoin miners. Additionally, a lotsbestemming of people buying bitcoins ter large quantities on SurBitcoin are buying because it is the only way for them to invoer fresh miners,” says Souza.

Additionally, many of SurBitcoins’ users are people turning their savings into bitcoin. Many of their users buy bitcoin ter very petite portions consistently te order to save money. Since the only way to get U.S. dollars ter Venezuela is through the black market, there are many scammers who take advantage of the situation to zeehond people.

“If authorities find out people are doing this, they will not zekering the operations, but rather ask for a bribe to pretend they never eyed it…. purchasing bitcoins turns to be the only safe, legal investment ter Venezuela where people can securely buy using their handelsbank account,” Souza said.

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