South American countries are struggling financially. Very tough decisions will need to be made in the years to come. For Paraguay, one decision can be very crucial to the nation’s economy. Deciding between supporting Bitcoin mining or addressing poverty can trigger an avalanche of consequences.
The Current State of Paraguay
Current statistics associated with Paraguay do not bode all that well. With an average wage of $329, there appears to be plenty of room for improvements. It is one of the “better’ minimum salary countries in Latin America, but not by much. Poverty is still a very real issue. This is despite significant economic growth over the past decade and a half. Crawling out of a proverbial well takes a lot of time and effort,
At this crucial time, the country has a decision to make. It is widely believed cryptocurrency mining has become very popular in Paraguay. That is only normal, as the ongoing search for riches often drives people to alternative solutions. Especially on the border between this country, Brazil, and Argentina, one particular dam is of great interest. Known as Itaipu, it is the world’s most powerful hydroelectric facility.
The dam itself has caught the attention of cryptocurrency miners. It offers a plethora of renewable energy currently not being used. As such, it would seem to create a utopian scenario for Bitcoin mining. So much even that it can become the world’s hub of mining altogether. However, the concept still meets a fair bit of scrutiny among policymakers and politicians.
Addressing Poverty Remains Crucial
The dam itself can serve many different purposes. One option is to sell the abundant energy to other countries. That concept would pay off Paraguay’s external debt in roughly ten years. It seems to be the most logical option, although it might not impact the lives of regular citizens right away. Another option is to go all-in on cryptocurrency mining.
Significant money can be made from exploring either option. Selling the energy is the safe bet, but with very little room for additional profits over the ten-year period. With cryptocurrency mining, all bets are off, and there is no guarantee of any money being made. Finding the right balance between the two ideas is a job for politicians and academics.
Addressing poverty in Paraguay will be an ongoing challenge. Although cryptocurrency mining makes sense, it will be a tough pitch to sell to the public. Reselling the energy and getting rid of external debt is the sensible thing to do under the current circumstances. A final decision on the matter is expected to be rendered in the near future. As the dam is shared with Brazil, there are many factors to consider.
What do you think Paraguay should do with the dam’s energy production, and why? Let us know in the comments.
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