Paraguay is blessed abundantly with natural resources and energy is a resource that is abundant, thanks to the powerful Itaipu dam. A debate now rages on the usefulness of the energy generated by this dam – invest more in cryptocurrency or bitcoin mining or in economic strategies to raise rampant poverty in this South American country.
The blessings of Itaipu
Cities in Paraguay's developing economy are suddenly adopting bitcoins and the mining of Ethereum due to their proximity to Itipau's powerful hydroelectric power generation capacity.
The country has about 20,000 units and continues to grow in the most unlikely places, quickly replacing drug smuggling, cartels and other local illegal activities, thanks to drug lords and warring factions.
Paraguay sitting on the power of bitcoin mining
Considering the employment and productivity opportunities that crypto-mining offers to its employees, Itaipu's incredible power generation capability is greatly appreciated.
However, the infrastructure, that is to say the computers and cooling systems that are the default for bitcoin extraction, is a disadvantage.
The other side of the bitcoin mining argument is that the government and its administrators should seriously pursue a populist politics and work for the liberation of its people from poverty.
The gap between the rich and the power in Paraguay is very fragmentary and, according to World Bank reports, the country has one of the highest levels of inequality in terms of land ownership.
According to a technological entrepreneur, Barreiro, which offers indigenous cooling systems for mining infrastructure,
"Paraguay today is the only place where there is abundant energy, we can become the center of bitcoin's global extraction."
Since the production of Itaipu dams far exceeds the country's consumption needs, Paraguay often finds itself selling its share of energy generated by co-sharing Brazil. However, the prices at which this transaction is far below the standard market prices, thus pushing Paraguay into a loss-making venture.
The power on national markets is priced at $ 0.5 per kilowatt hour.
This excess of energy availability has also led to attracting a large number of startups and other industries in Paraguay.
For entrepreneurs like Barreiro, the number of units launched in Paraguay is much lower and limited. He recommends that the government should seriously explore the further cut in energy prices so as to attract factories based in China to Paraguay. Almost 150,000 units can therefore be attracted to the manufacturer of cooling equipment.
Furthermore, industrialists should be encouraged to develop units supported by cryptocurrency, although the debate languishes between politicians and other stakeholders who prefer to explore traditional options. Furthermore, their current objective is only the sharing of financial dividends available from the production of the dam. In 2023 they want to get more out of the blessings of Itaipu.
The discussion it also considers the outcome suggested by researchers who recommend the use of energy produced by the dam to build a local and native manufacturing and manufacturing sector and thus provide jobs for almost 2 million. This would also have indirect benefits such as the quadrupling of Paraguay's GDP.