Hundreds of Mining Machines Are Seized Over

Annabella Cornelly

Venezuela, according to many reliable mass media sources, has long been one of the most dangerous places for Bitcoin miners. Many reasons and factors may influence the issue and many problems still exist in the industry. Statistics announced that thousands of people in Venezuela are secretly mining cryptocurrencies – this is one of the ways citizens find that help them survive during the economic crisis.

Mining BTC is legal in the country. However, police officers keep arresting BTC enthusiasts. As all participants know, the entire mining process requires an incredible amount of electricity. The local authorities seriously subsidize power, so when the government notices a spike in electricity consumption, it goes after those individuals.

Users in many countries consider crypto as a rather risky investment. More than that, there are regions like Venezuela, where this activity becomes too dangerous. Recently, Venezuelan official representatives have confiscated three hundred and fifteen Bitcoin mining systems. The National Guard has seized over three hundred mining machines. According to numerous reports, all this equipment was manufactured by Bitmain.

Journalists have found out more details related to the event. For instance, they revealed that the owners of the secret mining rigs were aware of the fact that they didn’t possess or obtain the necessary documentation to supervise, own, or operate the equipment. More than that, they did not receive authorization that would permit them to transport the equipment during the lockdown period.

Also, current legislation of the country states that all residents interested in performing in various activities related to cryptocurrencies must obtain the necessary documentation from an official organization known as the National Superintendence of Cryptoactives. Individuals who fail to receive this certification risk being fined. At the same time, their mining machines will be confiscated.

Bleak Economic Picture

The latest event has quickly spread across the crypto community inside the country and beyond its borders. Specialists admit that this sort of event is quite frequent and even though governments issue strict requirements and control the situation, secret miners are getting more creative and find new ways to keep on mining crypto without appropriate permits.

Thousands of the country’s citizens are turning to mining and do it in a secret manner. Due to the post-pandemic crisis, there are more miners who are ready to risk being arrested and put in jail – people, unfortunately, fail to find better ways to make their living and support their families and secret mining is what many do to earn money.

People feel rather pessimistic about the country’s future – currently, there are a lot of serious economic issues that the authorities cannot resolve. Another bad thing is that the country has the highest inflation rate in the world and prices keep growing. The bolivar is in the free fall and is still losing its value. Crypto is a different kind of currency and it offers more stability and safety to people. This is the key reason why the number of people getting involved In secret mining is increasing.