Hunt for crypto miners to create bitcoin farm

What are Bitcoin farms?

Previously, it was common to hear about cryptocurrency mining from home, where individuals created their mining equipment and began to perform the necessary tasks to complete the Proof of Work (PoW) process; later, digital currencies were issued, in this case, Bitcoin.

The reward rates for this independent network worker were relatively high due to the high costs of mining from home and with hardware that, in many cases, consumed too much electricity.

The foundation of mining is the process by which a transaction is verified so that it is later registered in the general operations book known as Blockchain. It is where the block as such is generated.

According to market capitalization, the cryptocurrency with the most movements in mining is Bitcoin; despite the adverse circumstances it has gone through, it continues to be the leader among crypto investment options.

Due to the high energy consumption that the cryptocurrency mining process entails, in addition to the computing power necessary for only mining 1 Bitcoin, mining pools have been created, where several teams decipher the algorithms simultaneously, making the mining task much faster mined.

It is how the interest arises from companies to industrialize the cryptocurrency mining process and what is now called mining farms occur, which consist of a space similar to a warehouse where a quantity of hardware is arranged so that it automatically operates simultaneously based on GPU and ASIC technology.

The legality of mining farms in the world

Cryptocurrency mining is considered a legal activity in some countries. Still, it remains under the supervision and control of various government agencies that allow crypto assets to be evaluated, thus avoiding tax evasion, illicit use, and money laundering.

Mining farms are installed in those areas where electricity is subsidized by the State, which reduces costs due to the high energy consumption of mining equipment. Still, this excessive consumption has affected communities, such as in the winter, when citizens and miners increase consumption.

The situation may make some countries like China, Ecuador, Bolivia, Algeria, and Egypt, to name a few nations that do not approve of cryptocurrency mining.

It is also interesting how many miners have had to immigrate to other countries where the benefits are usually much more attractive. That is where mining farms have begun to be installed, such as in Texas, USA.

The important thing in the case of these farms is that they have the legal conditions and infrastructure necessary for them to function legally, in addition to the fact that the profits produced by this activity could even benefit the institutions and even the communities from an economic perspective.

AFIP removes crypto farms

This time the crypto controversy moves to Argentina in South America, where many users of cryptocurrencies practice active crypto mining, perhaps as one of the most popular options to diversify the crypto investment portfolio.

The rewards in dollars that this activity leaves behind are pretty lucrative, which is why organizations such as the Federal Administration of Public Revenues of Argentina have begun a phase of inspection and hunting of mining farms that operate illegally, which undoubtedly gives a lot to think about concerning the funds generated, which must be subject to tax withholding.

The most significant concern of this organization is the high energy consumption that these teams execute, in addition to the fact that the energy used was stolen from public electricity and the electrical installations were made with general wiring.

Conclusion

Despite this situation, digital currencies have been in a constant struggle not to decrease their value further, which on several occasions has placed the responsibility of changing the digital financial market on miners.

In addition to being in charge of validating the transactions executed through the cryptocurrency blockchain, the miners have also seen their rewards decrease, which has undoubtedly caused adverse effects in the digital market.