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Cryptocurrency mining is suffering greatly due to a number of factors. General discouraging behavior of the bear market, a lowered amount of mining rewards and higher electricity and equipment maintenance costs are among those factors. It’s getting harder and harder for small-time miners to make ends meet. Big companies can afford to shift their operations to regions where weather is colder and electricity costs are low to improve upon their profits.
Bitfury is one such company. The crypto mining company announced this week that it is starting Bitcoin mining operations in Paraguay in partnership with Commons Foundation, which is a peer-to-peer research startup based in South Korea.
Both companies are set to operate a Bitcoin center that will process transactions in Paraguay. The initiative is part of a project called “Golden Goose,“ which includes an expansion in the “blockchain innovation and the use of cryptocurrencies to the Spanish-speaking countries.” The project includes building a large crypto center that will have both mining centers and exchanges. The project is green-lighted by the government of Paraguay as well and is set to receive tax benefits.
The sites will use BlockBox AC, which is a mobile data center by Bitfury. A local hydroelectric power plant in the country will power it. Paraguay has the largest hydroelectric power plant in the world. Their renewable energy operations provide a unique opportunity for mining operations like Bitfury’s to cut costs as they are generally very energy intensive. The mining facilities will have around 200,000 square meters, with energy provided by a 500 MW power substation.
Bitfury and the Commons Foundation are also set to collaborate on other important initiatives. A global crypto exchange that is scheduled to be launched at the end of 2019 is another planned collaboration. The two companies aim to cater to the users in Latin America, a region that does not have a big variety of crypto exchanges at the moment. There are exchanges available in the region but they are either international without properly localized branches or they are from local companies who do not have enough reach in the international market.
The announcement by Bitfury also detailed that the platform will use Bitfury Crystal analytics in order to whitelist users via Anti-Money Laundering and Know Your Customer procedures. Collaborations like this are going to be key in carving out a path for the crypto market’s future.