Venezuelan Bitcoin Mining Continues Despite Government Crackdown

Samuel Haig

The Atlantic has reported that Venezuelan bitcoin mining continues despite government efforts to crack down on miners. Venezuelahas long suffered from extreme hyperinflation, inspiring many Venezuelans to mine cryptocurrency to supplement their incomes.

Bitcoin Mining Is Gaining Popularity in Venezuelain Part Due to an Abundance of Cheap Electricity

With the annual inflation rate expected to reach 1,600 percent, Venezuelan bitcoin mining is likely to grow in the short term. Recent reports have indicate that the Venezuelan government has been initiating a crackdown on cryptocurrency mining, motivated by concerns that bitcoin may comprise a more attracting means of exchange than the Venezuelan bolivar.

Bitcoin mining is gaining popularity in Venezuela in part due to an abundance of cheap electricity. Despite many Venezuelans struggling to access basic commodities such food, most citizens are able to afford the power required in order to mine cryptocurrencies.

People Haven’t Stopped Mining… They’ve Just Gone Deeper Underground Rodrigo Souza, Founder of Blinktrade

The first attempt made by authorities to crack down on Venezuelan bitcoin mining was the arrest of Joel Padron. Padron is the owner of a courier service who started mining bitcoin in order to supplement his income. It is reported that Padron was arrested and “charged with energy theft and possession of contraband and detained for 14 weeks”. Since then, numerous mining operations have been targeted, with The Atlantic alleging that in some instances “corrupt police” have stolen mining hardware “for personal profit”.

Rodrigo Souza, the founder of Blinktrade – the parent company to Venezuelan bitcoin exchange Surbitcoin, has stated that the Venezuelan bitcoin miners remain undeterred despite the hostilities from authorities. “People haven’t stopped mining… they’ve just gone deeper underground,” Souza told The Atlantic.

The Atlantic has also reported that ethereum mining is increasing in popularity in Venezuela. One ethereum miner told reporters that “mining ETH or bitcoin is pretty much the same principle: using free electricity to generate cash… but ETH mining is more affordable – all you need is free software and a PC with a video card. Any police officer is easily fooled into thinking your ETH miner is just a regular computer.”

Do you think that Venezuelan bitcoin mining will continue to flourish despite hostility from authorities? Share your thoughts in the comments section below!

Blockstream to Transmit Bitcoin Data to Earth Using Satellite Technology

Sterlin Lujan

Bitcoin protocol firm Blockstream just announced their plan to transmit bitcoin from space across the world using satellite technology. They have leased these satellites for the purposes of downloading a working bitcoin node, which would harbor all of the blockchain’s transaction data. These satellites will potentially give people who are disconnected from the internet access to bitcoin.

Blockstream Satellite to Drive Bitcoin Adoption; Open Source Software Powers the Satellite

Blockstream CEO Adam Back talked about how the technology would help people across the globe. He said, “Today’s launch of Blockstream Satellite gives even more people on the planet the choice to participate in Bitcoin. With more users accessing the Bitcoin blockchain with the free broadcast from Blockstream Satellite, we expect the global reach to drive more adoption and use cases for Bitcoin, while strengthening the overall robustness of the network.”

The satellite setup uses open source software to make using the technology inexpensive and less cumbersome. Software includes GNU Radio, software-defined radios (SDR), and Fast Internet Bitcoin Relay Engine (FIBRE). When combined, these technologies will allow blockstream to provide access to bitcoin across the world, according to the company.

The Satellites Will Embrace More Countries by 2017

Individuals in North America, South America, Africa, and Europe can already harness the power of these satellites. Blockstream intends to add more countries to the list by the end of 2017.

The system works via ground satellites called “teleports” that transmit blockchain data to stations in space, which then relay the signal worldwide. Blockstream intends to build more of these teleports in order to make the space network more robust and accessible.

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