Constant Blackouts Have Ruined Crypto Mining Investments in Cuba

Constant Blackouts Have Ruined Crypto Mining Investments in Cuba

Constant blackouts have ruined crypto mining investments in Cuba. Several small investors are badly affected by the constant blackouts in several parts of Cuba. Cryptocurrency mining activity has become largely unsustainable as miners are unable to operate their rigs. The blackouts have also affected the telecommunications sector.

Crypto Mining in Cuba is Unsustainable

Cubans use cryptocurrency to pay for services such as international shopping, mobile phone and internet top-ups, and sending and receiving remittances. However, cryptocurrency mining is facing problems reaching the same level of popularity.

Crypto mining was once considered a smart investment by Cubans, but the idea has been diluted due to the power crisis prevailing in the country. The current state of the Cuban power grid puts mining operations in jeopardy due to the constant blackouts in the country. Raydel González, a small cryptocurrency miner who built his rig, explained to the local news site Cubanet the problems faced by him in the country today. He stated:

"Like many others, I had invested a lot of money in cryptocurrency mining equipment that is not cheap. With the advent of blackouts, cryptocurrency mining in Cuba is unsustainable."

Other miners like Eduardo Gomez purchased power plants to keep their operations ongoing, but the scarcity of gas has also made it difficult for these operations that run on off-grid power to be sustainable. Gomez explained that he is still unable to generate revenue from an investment of USD 5,000.

Telecommunications are Also Affected

But even miners that have managed to run their operations off-grid, having secured a constant flow of gas to run their plants, are being affected by the issue. With the limited plants of Etectsa, the local Cuban telecom company, the blackouts are also affecting the local telecom grid.

This problem was reported in June when other officers of the company were already facing similar issues. At the time, an anonymous Etecsa worker stated:

"Etecsa’s generators are running out of fuel to support so many hours of blackouts. The plants are not capable of generating all the energy necessary to keep so much equipment on for so long, and that is why everything works incorrectly." 

What is your take on the current crypto mining problems in Cuba? Please post your comments.