According to reports from Venezuelan media, clandestine bitcoin mining is gaining popularity again after the government ordered the closure of registered farms and disconnected them from the power grid.
Growing interest in clandestine mining
The executive manager of Crypto Tools company, Jesus Montilla, stated that many miners in Venezuela continue their activities despite government directives. There is a significant level of activity in his store from miners who prefer to remain in the market despite the authorities’ ban. According to him, companies involved in digital asset mining have found ways to continue their operations by setting up equipment in inconspicuous locations and hiding their activities.
Context and consequences of government directive
In May 2024, the Venezuelan government issued a directive to close all registered bitcoin mining farms. This decision was made in response to the growing energy crisis in the country. As a result, over 17,000 miners were disconnected from the national power grid, causing significant disruptions in the cryptocurrency sphere.
However, despite these measures, many miners did not give up and went underground. They continue to use hidden locations for equipment installation, allowing them to bypass blocks and restrictions. This makes their activities harder to detect by the authorities, highlighting the perseverance and ingenuity of market participants.
Difficulties and risks for miners
Nevertheless, clandestine miners face serious difficulties. They report issues with connecting to electrical grids, making their activities even riskier. Additionally, miners must avoid detection by law enforcement and officials to prevent equipment destruction and criminal prosecution. In the face of increasing pressure and risks associated with illegal cryptocurrency mining, many of them work under constant stress and danger.
This situation illustrates how government measures can lead to unexpected results, highlighting the complexity of regulating and controlling the rapidly evolving cryptocurrency and mining industry.
