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Argentinian Presidential Candidate’s Plan to Mine BTC Stirs Debate

Published 03/11/2023, 08:22
Updated 03/11/2023, 08:45
© Reuters.  Argentinian Presidential Candidate’s Plan to Mine BTC Stirs Debate
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  • The crypto community in Argentina is divided over presidential aspirant Sergio Massa’s plans for Bitcoin mining operations.
  • Massa proposed using excess natural gas from the Vaca Muerta oil fields to mine Bitcoin.
  • Critics acknowledged the proposal’s merits but argued the government should stay on the sidelines.

Argentinian presidential candidate Sergio Massa has left the crypto community in the country divided after he unveiled plans to use natural resources to boost Bitcoin mining operations, local news outlet CriptoNoticas reported.

Indeed, Massa, in late October, said he plans to use excess natural gas from the Vaca Muerta oil fields to mine Bitcoin. According to a CriptoNoticas report, the proposal was presented to the candidate by computer scientist Santiago Siri.

Following the revelation, Massa’s plans have divided Argentina’s crypto community over whether the proposal would benefit the country. On the one hand, supporters of the proposal argue that using excess gas for Bitcoin mining means it would be put to productive use rather than being flared or vented.

However, critics asserted that while the proposal might be good in theory, the operations will be too expensive, sophisticated, and complex for the government to undertake.

Notably, José María Sarasola, CEO of startup Cryptogranjas, which runs a Bitcoin mining operation in Vaca Muerta, told CriptoNoticas that the disadvantages of the proposal far outweigh its benefits. He noted that while Bitcoin mining is lucrative, high running costs and price volatility have affected its profitability in recent years.

Along the same lines, Ricardo Mihura, President of Bitcoin Argentina, suggested that the government should focus on driving Bitcoin mining investment rather than being a participant. He added that specialized companies are better positioned to take on the investment risks.

Furthermore, Rodolfo Andragnes, co-founder of Bitcoin Argentina, argued that the government should introduce incentives like taxes and equipment import restrictions to drive private mining ventures. He mentioned that this is a better option than the government’s direct involvement in the sector.

With the second round of the presidential elections scheduled for 19 November, Massa has emerged as one of the favorites for the top position. Before his running for president, he served as the country’s finance minister. Massa is also known for his public support for crypto adoption and development in the South American country.

The post Argentinian Presidential Candidate’s Plan to Mine BTC Stirs Debate appeared first on Coin Edition.

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