Nowadays, Venezuela is experiencing the worst hyperinflation since the Weimar Republic. Thus, the annual inflation rate is expected to hit 1,600%.
In order to survive, thousands of Venezuelans have shifted mining the cryptocurrency.
— Mad Bitcoins [NO2X] (@MadBitcoins) 24 августа 2017 г.
As ever, whether a mining operation is profitable depends on two main factors: the cryptocurrency’s market value—and the price of electricity, needed to run the powerful hardware.
Bitcoin charts on coinmarketcap.com
As reported by theatlantic.com, a Bitcoin miner who runs several Bitcoin mining devices in Venezuela can earn around $500 per month. This amount can feed a family of four and buy basic goods like baby diapers or insulin from abroad.
Ethereum charts on coinmarketcap.com
However, the government authorities have started to crack down on mining operations because it is considered illegal in the country. Thus, Venezuelan police arrest the miners on “made-up” charges due to the absence of cryptocurrency laws that regulate mining.
The crackdown forced many miners to operate very discreetly, while others are reportedly turning to Bitcoin’s rival Ethereum and Zcash for bigger and much more sustainable profits.