Crypto Mining In Cuba Suffers Owing To Electricity Crisis

Cryptocurrency mining in Cuba has been interrupted for some time by the electrical crisis on the Caribbean island. Various parts of Cuba have experienced repeated blackouts, which have made mining rigs in Cuba unsustainable and even impossible in certain cases.

This has caused many Cubans to lose thousands of dollars that they had invested in acquiring crypto mining equipment and graphics cards. Constant power outages have led to constant interruptions to mining hardware, hindering potential revenue for operators.

Cuban citizens have reportedly been experiencing power cuts that extend for more than 10 hours a day. Additionally, weather events such as Hurricane Ian have rendered the nation’s electrical power plants suboptimal.

The Cuban electricity grid is not suitable for cryptomining

Crypto has secured a remarkable level of functionality in Cuba. However, interruptions in electrical service have suppressed the profitability of this particular activity in the country. Cubans once considered crypto mining a wise investment, but the current condition of the Cuban power grid has left citizens constantly looking for ways to address the problem.

A small cryptocurrency miner named Raydel González, who built his own mining rig, spoke with the local news site CubaNet, where he explained the challenges and difficulties that a miner has to go through in the country.

“I, like many others, had invested a lot of money in cryptocurrency mining equipment that is not cheap,” González said. “With the advent of blackouts, cryptocurrency mining in Cuba is unsustainable.”

González is not the only one on this boat. Other miners like Eduardo Gómez had bought the power plants and believed that this move would keep operations going. Additionally, there has been a gas shortage which has made the problem even greater for operations running on off-grid power to be a sustainable source. Eduardo Gomez said that he is struggling to earn income from a $5,000 investment.

The Internet is also affected by electrical fluctuations

Cuban miners continue to seek other alternatives to overcome the electrical problem in their country. Another major resource that has suffered greatly is the Internet. The internet is a vital component to crypto mining, and that appears to be affected by power blackouts and fuel shortages in Cuba as plants have stopped working.

Miners who kept their equipment running have encountered additional problems as a result of the volatility. The last resort, which also happens to be one of the riskiest ways for miners to make ends meet, is to move their equipment to their jobsites, since state jobsites have power plants.

This can have other impacts, such as the loss of your mining jobs and hardware, along with the threat of more severe penalties. Many miners are selling their mining equipment well below cost to offset at least part of their investment.

Young Cuban entrepreneurs had turned to cryptomining as a way to obtain these digital assets. This would bring benefits to miners, including making online purchases abroad and sending payments and remittances for services.