In the wake of the Kovid crisis, with rising unemployment rates and large-scale economic uncertainty, a growing number of Brazilians are finding alternative income sources in cryptocurrency mining. GPU rigs have also been seen in favelas because relatively small investment can yield higher-than-average returns in Brazil.
Pandemic and uncertainty turn more Brazilians into cryptocurrency mining
The ongoing coronavirus epidemic has had a tremendous impact on Brazil and the country ranks among the hardest hit with more than 450,000 deaths. COVID-19. South America’s largest economy shrunk by more than 4% in 2020, resulting in record high unemployment for nearly a decade – 14.3 million citizens are unemployed, the National Statistical Office announced earlier this year.
Low or no salary with a weak economic outlook has pushed Brazilian To find new ways to meet needs. According to a recent report by Portal du Bitcoin, more and more people in the country are turning to crypto mining as an alternative source of income. Government data showing an increase in hardware imports and power consumption have confirmed this trend.
Profitability varies depending on the scale, but a 34-year-old student from Pimahi has helped crypto news outlets get an idea of the economics of domestic mining. Expedito Felipe started casting ether (ETH) in January, investing 47,000 reals (about $9,000) in equipment to “increase, diversify” its income. He earns 3,000 to 5,000 reals (about $ 600 – $ 900) every month, spending only $ 100 on electricity.
In the absence of accurate data, it is difficult to estimate accurately the true dimensions of domestic mining activity in Brazil, but circumstantial indicators suggest that it is flourishing. Many Facebook groups with large subscriptions are spreading information about technical aspects, while YouTube videos on the subject have been viewed hundreds of thousands of times. According to some social media reports, the rig is now even being mined Slum, Brazil’s poorest neighborhood.
Brazil imported video cards for $20 million in the first quarter of this year
Socio-economic issues such as unemployment, lack of opportunities and devaluation of Brazilian Real may partially explain the crypto mining boom, but according to Jose Guilherme Silva Vieira, an economics professor at the Federal University of Paraná, a positive difference between expectation and return The cost is what really inspires popular interest. Speaking to the portal du bitcoin, he elaborated:
Cost is defined by the equipment used and the expenses. Mining consumes a lot of electricity. However, over the past 12 months, returns from activity have been affected by excessive valuation of cryptocurrencies.
Graphics cards are an essential hardware element of a home manning rig and Brazil has recorded an increase in imports this year. According to data compiled by the Ministry of Industry, Foreign Trade and Services, Brazilian companies have imported GPU Only for 106 million reals (more than $ 20 million) in the first quarter, a four-fold increase over the same period of 2020.
Power consumption has also increased in some areas. There has been no official statement from the government yet, which links the increased use of electricity to cryptocurrency mining. However, Enel Distribuição São Paulo, one of Brazil’s largest electricity distributors, has discovered 69,000 cases of theft from the grid in 2020 alone in 24 municipalities provided by the utility company. This is about 20 per cent more than last year.
Is domestic cryptocurrency mining profitable in your country? Share your thoughts on this topic in the comment section below.
Image credit: Shutterstock, Pixabay, Vicky Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell a product, services, or companies, or a recommendation or endorsement of a product, services, or companies. Bitcoin.com Does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is directly or indirectly responsible for any damage or loss in connection with the use or reliance of any of the materials, goods or services mentioned in this article.