Cryptocurrency miners in various countries are facing problems due to falling bitcoin prices in the last two weeks. But this did not stop the Paraguayan government from supporting a blockchain technology foundation called the Commons Foundation in building the world's largest mining farm in terms of land – over 530,000 square meters. The project would be known as the Golden Goose Project, as reported by CCN on Sunday.
The Government of Paraguay will provide five plots of land to facilitate the project, which would also include the largest bitcoin exchange in the world, in terms of trade volume.
The Commons Foundation, based in South Korea, will build the mining farm near the Itaipu hydropower plant, which is among the largest in the world with an annual energy output of 103 terawatts. Only 20 percent of the nation's power is consumed internally and the rest is exported.
"The Commons Foundation has also secured an agreement with the government for at least five years of power from the competitive price – about 80% less than any agreement that the foundation could guarantee in South Korea", according to the report CCN. The government also ensured the installation of high-speed Internet networks and the establishment of laws for all activities related to the project.
"The Government of Paraguay will actively support the Golden Goose project of the Municipal Foundation and will provide tax breaks through constitutional reviews," said CCN, citing Hugo Velazquez Moreno, vice president of the country. No time has been given for the development of the project.
If Paraguay carries out a constitutional review to include the tax provisions for the cryptocurrency sector, it would mean recognizing the trade in cryptocurrency or cryptocurrency as a legal activity.
The Commons Foundation is planning to host pre-sales and initial exchange offers to fund the project. Token holders are promised 30 percent of mining profits and 70 percent of daily profits. The profits would be paid in cryptocurrency including the microbitone, a cryptocurrency negotiable with the US dollar.
The price of Sunday's bitcoins fell below $ 3,600, more than a minimum of 15 months, as reported by CoinMarketCap. This collapse of prices has caused significant losses for cryptocurrency traders and currency miners.
Mining currencies require a lot of electricity. Miners can only afford energy bills if the price of the particular currency they are mining remains high. On Wednesday, the Norwegian government said it would abolish the electricity subsidy granted to cryptocurrency miners. The country's cryptocurrency miners would have to pay a regular fee on electricity from 2019. With the end of the grant, cryptocurrency miners would see a sharp increase in their spending, which in turn would risk subduing their net profits.
Some small and medium-sized miners in Xinjiang and Inner Mongolia of China sell their mining machines as trash in the used market. Miners could not cover the cost of electricity by extracting currencies with their old machines