Bitfarm, a global bitcoin mining company, tells us that the price of bitcoin, above all other factors, is one of the most important factors for the future of the industry. Bitfarm’s Latam General Manager Damian Polla said that countries like Argentina, where Bitfarm is building a bitcoin mega mining center, were destined to be very good for bitcoin mining companies due to a number of factors.
The drop in bitcoin prices constitutes a challenge
Bitcoin mining companies are beginning to feel the effects of the slowdown in bitcoin prices in the crypto market. The company declares that the drop in the bitcoin price, more than all other factors, is the most important issue facing miners right now. This has directly affected the company due to its holdings, taking it from unicorn status to a valuation currently under $500 million.
In an interview given to local media, Bitfirm’s Latam general manager Damian Polla said,:
The biggest challenge facing the sector in the short term, both in Argentina and globally, is the drop in the price of bitcoin, which decreases revenues and increases operating costs.
Polla also considered this price drop as evidence of progress in the cryptocurrency market and identified it as “mainstream” in the global market due to its correlation with other traditional equity indices.
Bitfarm in Argentina
With a quota of 1.5% of the global bitcoin hash rate, the company has significant investments in Argentina and Paraguay. The company is currently building a bitcoin megafarm in Argentina that will be designed to host 55K miners with 210 megawatts of power capacity. While other companies in the country are implementing layoffs as a plan to resist the announced upcoming economic phase, Bitfarms is currently creating 200 jobs with the construction of the aforementioned mining facility.
Paula revealed what made Bitfarms invest in the country instead of taking it elsewhere. He explained that.
Argentina is a great destination for this type of investment because it offers competitive energy prices, quality human resources, and a very active cryptocurrency ecosystem. Despite its economic ups and downs, Argentina’s crypto ecosystem is a leader in the region.
The company is not currently planning any new investments in the region, but Polla explained that Bitfarms is always evaluating new opportunities in Argentina, Latam, and even the United States
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