Crypto mining in Cuba is suffering due to the electricity crisis

Cryptocurrency mining in Cuba has been halted for some time due to the Caribbean island’s electricity crisis. Several parts of Cuba have experienced repeated power outages, making mining rigs in Cuba untenable and even impossible in certain cases.

As a result, many Cubans have lost thousands of dollars that they invested in purchasing crypto mining equipment and graphics cards. Constant power outages led to constant outages of the mining hardware, which prevented the operator’s potential income.

Cuban citizens are reportedly experiencing power outages lasting more than 10 hours a day. Furthermore, weather events such as Hurricane Ian have made the country’s electricity plants less than optimal.

The Cuban electricity grid is not suitable for crypto mining

Crypto has provided a notable level of functionality in Cuba. However, interruptions in the supply of electricity reduced the profitability of this particular activity in the country. Cubans once considered crypto mining a wise investment, but the current state of Cuba’s power grid has citizens constantly looking for ways to solve the problem.

A small-time cryptocurrency miner named Raydel Gonzalez, who built his own mining rig, spoke to local news portal CubaNet, where he explained the challenges and hardships a miner has to go through in the country.

“I, like many others, have invested a lot of money in cryptocurrency mining equipment that is not cheap,” Gonzalez said. “With Blackout Coming, Cryptocurrency Mining in Cuba Is Unsustainable.”

Gonzalez is not the only one in this boat. Other miners, like Eduardo Gomez, bought power plants and believed the move would keep them running. Furthermore, there has been a shortage of gas which has made the problem even greater for operations running on off-grid electricity to be a sustainable source. Eduardo Gomez said he is struggling to make a profit on a $5,000 investment.

The Internet is also affected by electrical fluctuations

Cuban miners continue to look for other alternatives to solve their country’s electricity problems. Another great resource that has suffered is the Internet. The internet is a vital component for crypto mining, and it appears that power outages and fuel shortages in Cuba are affecting it as facilities have become inoperable.

Miners who kept their equipment running encountered additional problems as a result of the volatility. The last resort, which is also one of the riskiest ways to make ends meet for miners, is to move their equipment to their workplaces, since government workplaces have power plants.

This can have other consequences, such as the loss of jobs and mining hardware, along with the threat of more serious sanctions. Many miners sell their mining equipment well below cost to recoup at least part of their investment.

Young Cuban entrepreneurs have embraced crypto mining as a way to monetize this digital asset. This would provide miners with benefits, which include online shopping abroad and sending payments and remittances for services.

Leave a Comment

Your email address will not be published. Required fields are marked *