Cryptocurrency mining in Cuba has been suspended for some time due to the Caribbean island’s electricity crisis. Several parts of Cuba have experienced repeated power outages, which have made mining rigs in Cuba unsustainable and even impossible in certain cases.
This has caused many Cubans to lose thousands of dollars that they had invested in acquiring crypto mining equipment and graphics cards. The constant blackouts have led to consistent interruptions in the mining hardware, which has hindered the operators’ potential income.
Cuban citizens have reportedly experienced power outages lasting more than 10 hours a day. Furthermore, meteorological events such as Hurricane Ian have made the country’s electrical power plants less than optimal.
Cuban power grid is not suitable for crypto mining
Crypto has secured a remarkable level of functionality in Cuba. However, interruptions in power supply have suppressed the profitability of this particular activity in the country. Crypto mining was once considered a wise investment by Cubans, but the current state of the Cuban power grid has citizens constantly looking for ways to navigate the problem.
A small-time cryptocurrency miner named Raydel Gonzalez, who built his own mining rig, spoke to local news website CubaNet, where he explained the challenges and hardships that a miner has to go through in the country.
“I, like many others, had invested a lot of money in cryptocurrency mining equipment that is not cheap,” Gonzalez said. “With the arrival of blackouts, cryptocurrency mining in Cuba is unsustainable.”
Gonzalez is not the only one in this boat. Other miners such as Eduardo Gomez had bought the power plants believing that this move would keep operations going. Furthermore, there has been a shortage of gas, which has made the problem even greater for the businesses that operate with electricity off the grid to be a sustainable source. Eduardo Gomez stated that he is struggling to bring in income from a $5,000 investment.
The Internet is also affected by electrical fluctuations
Cuban miners continue to search for other options to circumvent the electricity problem in their country. Another important resource that has suffered enormously is the internet. The Internet is an important component of crypto mining and it appears to be affected by power outages and lack of fuel in Cuba as facilities have become non-functional.
Miners who kept their equipment running have encountered additional problems as a result of the volatility. The last resort, which also happens to be one of the riskiest ways to make ends meet for miners, is to move the equipment to their workplaces, as the government workplaces have power plants.
This could have other consequences, such as the loss of jobs and mining hardware, along with the threat of more severe sanctions. Many miners sell their mining rigs well below cost to recoup at least some of their investment.
Young Cuban entrepreneurs had embraced crypto mining as a way to earn these digital assets. This will give miners benefits, which include making online purchases abroad and sending payments and remittances for services.