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Cryptocurrency mining prohibited in Venezuela's housing estates

Bitcoin Mining - Cryptocurrency mining prohibited in Venezuela's housing estates

As is well known, the mining di cryptocurrency involves a considerable use of electricity. A theme seen with growing concern not only by observers, but also by governments, precisely in light of the need to arrive at a new energy model that is less dangerous for the overall health of the planet. Among the governments in question there is also that Venezuelan, who decided to tackle the issue with determination. He did it through Ildemaro Villaroel, Minister for Habitat and the House, who has declared that in the country it will no longer be possible to carry out mining in state-owned neighborhoods. In practice these are those who are part of the housing project "Gran Misión Vivienda", highly publicized over the past few years for the remarkable results achieved.

Mining: Villaroel's statement

Villaroel's statement came during an official meeting, held on July 15th. During which the minister stated that, in complexes connected to public housing, all types of machinery connected to mining are banned.
The reason for the decision is to be found precisely in the enormous consumption of electricity necessary for this type of activity. A level of consumption which in practice represents a clear violation of state rules in the energy sector.

Gran Misión Vivienda: what is it about?

Gran Misión Vivienda is a urban development plan fielded by the Venezuelan government with the specific intention of guaranteeing low-cost houses to the weaker sections of the population. Bands which were hit hard by the economic crisis that occurred long before COVID-19, due to the embargo operated by the United States government.
It is basically a part of the Plan of the Fatherland, a wide-ranging plan that provides for the delivery of 3 million homes to popular groups. At the end of 2018, about 2,3 million had already been delivered and it is assumed that despite the slowdown resulting from economic difficulties, the plan is now well advanced.

The use of the Petro

To underline also the fact that to carry it forward, the Venezuelan authorities have decided to leverage the Petro, the state cryptocurrency. A fairly logical decision in light of the desire to make digital currency more popular and advise citizens against using the dollar.
A will that has materialized with a long series of decisions that have also contributed to creating a fertile ecosystem for the dissemination of digital assets. Increasingly needed in light of continuous devaluation to which the local currency, the bolivar, is subjected. For some time now, a large number of citizens have been changing cryptocurrency wages and pensions to defend their purchasing power. In practice, the volatility of virtual currencies is considered less dangerous than inflation affecting the bolivar.

Criticisms of the government's decision on mining

The decision of the Caracas government was contested on the basis of the failure to adapt the electricity grid in recent years. The country has in fact found itself in great difficulty from an infrastructural point of view precisely because of the problems triggered by the US embargo. An embargo that has not loosened even with the appearance of the pandemic. A criticism which, however, does not seem to take into account the increasingly heavy levels of electricity consumption associated with mining. Such as to be viewed with growing concern by experts.

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Dario Marchetti

I have a degree in Literature and Philosophy from the Sapienza University of Rome, with a thesis on the eastern border of Italy at the end of the First World War. I have collaborated with several sites on many issues and led the work group that published the official CD-Rom of the SS Lazio "History of a love" and "Photographic History of Magical Rome".

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