2016-11-29 Reason.com - The Secret, Dangerous World of Venezuelan Bitcoin Mining

[cr1776]

Four years ago, Alberto's career prospects were bleak. The 23-year-old Venezuelan had just graduated from college with a degree in computer science, but his nation's economy was already shredded by 13 years of socialism.
...
Alberto, meanwhile, based on his own account, is earning more than $1,200 a day mining bitcoins and other cryptocurrencies.

He's part of Venezuela's rapidly growing digital currency mining community. Faced with growing threats of violent crime and government extortion, its members interface through secret online groups and take extreme precautions to hide their activities.

http://reason.com/archives/2016/11/28/the-secret-dangerous-world-of

One of the key points in the article was that the authoritarian socialists keep electricity virtually free, so mining is only a matter of getting the miners and turning them on.

Now if I still knew people in Venezuela, that would be a good arbitrage.  Send them miners and split the proceeds.

[Chin Cheng]

Four years ago, Alberto's career prospects were bleak. The 23-year-old Venezuelan had just graduated from college with a degree in computer science, but his nation's economy was already shredded by 13 years of socialism.
...
Alberto, meanwhile, based on his own account, is earning more than $1,200 a day mining bitcoins and other cryptocurrencies.

He's part of Venezuela's rapidly growing digital currency mining community. Faced with growing threats of violent crime and government extortion, its members interface through secret online groups and take extreme precautions to hide their activities.

http://reason.com/archives/2016/11/28/the-secret-dangerous-world-of

One of the key points in the article was that the authoritarian socialists keep electricity virtually free, so mining is only a matter of getting the miners and turning them on.

Now if I still knew people in Venezuela, that would be a good arbitrage.  Send them miners and split the proceeds.

how would you invest your money when the political system is corrupted and the growing threats of crime will deter any potential investors to risk with their money even if it means free electricity

[mixan]

This is very interesting.
If there is a will there is certainly a way.
One would have to have family there that they can trust to do anything with onboard mining there.

[IconFirm]

how would you invest your money when the political system is corrupted and the growing threats of crime will deter any potential investors to risk with their money even if it means free electricity

The same way as in every other country - with care, because every country is corrupted, just some more than others.

[Snorek]

So - they have free electricity and energy in Venezuela but the country economy is crumbled?
Bolivar is useless currency with ridiculously low purchasing power so government is hunting down bitcoin miners?
Moral of the story: "Our country suck but some people found a way to earn money - lets punish them for that".

But the as long as bitcoin mining will be profitable people will be doing it - government has no chance to win this fight.