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“In Paraguay it is still profitable to mine bitcoins”

October 23, 2020

Paraguay has a special situation in Latin America due to the low electricity costs. In this context, Cointelegraph en Español spoke to Luis Pomata, CEO and Co-Founder of Nano Mining Paraguay to learn more about Bitcoin mining.

Fernando Quirós (FQ): Is Bitcoin mining still profitable in Paraguay?

Luis Pomata (LP): In Paraguay, mining bitcoins is still profitable as we have the lowest electricity costs in the region. The normal cost is 5 cents per KW / h and can be up to 3 cents per KW / h. It’s something that can only be seen in Asian countries or some places in North America.

“In Paraguay it is still profitable to mine bitcoins”
“In Paraguay it is still profitable to mine bitcoins”

For those who don’t know In Paraguay, together with Brazil, there is one of the world’s largest producing hydropower plants, the Itaipu Dam. This means that mining (of cryptocurrencies) in Paraguay is done with clean and renewable energy.

QQ: What other properties make Bitcoin mining profitable in Paraguay?

LP: In addition to energy costs, which is the main thing, we have other benefits that help make Bitcoin mining profitable in Paraguay. We have low machine import cost, the duty is around 10%. In addition, there are further shipping costs, which are nevertheless extremely attractive.

Then we have low cost of technical work and finally you can buy or rent storage / shed to use as data centers that meet the necessary requirements to house mining equipment at a very affordable price.

QQ: What is Nano Mining Paraguay? What services do you offer?

LP: Nano Mining Paraguay leases the mining capacity of its mining machines so that anyone can become a bitcoins miner without having to invest in buying and importing a machine from China, a process that can be very expensive and very complex.

It is a business concept that is similar to so-called cloud mining, but with a Latin touch. What we offer are various mining plans that can be customized to suit each person’s budget.

QQ: Unlike certain cloud miners, you don’t offer or promise certain returns. How do they differ from cloud miners?

LP: Before starting, we asked ourselves how we can offer this service, which in our opinion can help many people to get into the world of Bitcoin mining, but can also counteract the bad image of cloud miners.

First, We knew we already had a reputation in Paraguay as the owner of Cripex, the first cryptocurrency exchange in the country. We contribute to this active union participation through the Paraguayan Fintech Chamber and promote the acceptance and regulation of the crypto industry in the country.

Secondly Our main difference is that we are an open and transparent companyWe regularly do tours to our Bitcoin mine so that people know and understand more about the business and who is behind it. This creates a lot of trust as many fraud cases don’t even have their own mining machines.

In third place We do not offer any reward or pricing schemes. This is a very popular practice of the pyramids, where old customers are paid with what comes from new customers.

On fourth place We do not offer or promise any returns. We are aware that we are only renting mining capacity from our Bitcoin mining machines. This should be clear to everyone as we cannot deal with the most important variables in mining, namely the difficulty of mining and the price of Bitcoin.

Last but not least, we strive to create alliances and agreements with companies that are solid and referenced in the market to validate our business and give our users that extra confidence.

QQ: Do you only work in Paraguay or do you also have clients from other countries?

LP: Our mission is to be the largest in Latin America. We accept clients from all countries and we already have clients from different countries like Colombia, Argentina, Chile and Paraguay.

QQ: You commented that you are part of Cripex. Can you give us more details about this group?

LP: We launched Cripex, an online cryptocurrency exchange from Paraguay, in 2018. We are big and known from Paraguay. In the following year we started mining bitcoins in order to be able to sell them on Cripex due to the high demand. Many customers were interested in mining and asked us to participater, but the high cost of the machines prompted us to develop the Nano Mining Paraguay business model. Today we are a horizontally integrated group from mining to buying and selling cryptocurrencies.

QQ: What potential do you see for Bitcoin in Latin America?

LP: I personally think so Bitcoin will be an instrument that will bring many people closer to a new type of banking: decentralized banking. Bitcoin will make it easier for many businesses to get remittances from abroad, and there will also be many people who will gain access to new financial savings and credit services that they do not qualify for today.

QQ: How would you explain what it means to mine bitcoins?

LP: Mining bitcoins is the same as collecting bitcoins in order to be prepared in the event that optimistic price predictions are fulfilled. Bitcoin is here to stay, and I think the moment to get into mining before the wave passes us without realizing it. You can find more information about us on our website, see the plans we offer and we even have a calculator that gives estimates of how much can be broken down during the plans.

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