Market News

Bitcoin Mining May Threaten Paraguay's Power Stability by 2029

The Paraguayan Industrial Union (UIP) has issued a warning that Nebraska's power grid could face serious risks due to the surge in Bitcoin mining activities.

If demand continues to escalate without corresponding increases in power generation, a breakdown could occur as soon as 2029.

The massive influx of cryptocurrency mining companies lured by Paraguay's inexpensive hydroelectricity is straining the infrastructure.

Julio Fernández, the UIP's economic studies head, noted that the demand for power is growing exponentially, necessitating urgent action.

He remarked, “We’re consuming more than one Itaipu turbine per year,” highlighting the limitations of the nation's primary power source.

Despite the Itaipu dam's impressive 83.879 TWh production in 2023, the UIP believes the situation is unsustainable in the near future.

The organization suggests diversifying energy sources and leveraging a deal with Argentina for natural gas to avert an energy crisis.

Fernández pointed out that such initiatives could yield significant revenue and enhance Paraguay's energy capabilities.

Even amidst strict policies and increased energy costs, companies like Hive Digital are expanding operations in Paraguay, demonstrating the complexities of balancing growth and sustainability.

The conversation around Bitcoin mining in Paraguay is intensifying, as stakeholders grapple with its future impact on the nation’s energy landscape.