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Venezuela, an oil-rich country, is becoming a Bitcoin mining hotspot. Find out why this is.

Bitcoin can be acquired in two ways. The first is to buy it with fiat money from an online exchange, and the second, more difficult method is to mine it.

It's a highly specialised procedure. Miners work to verify each cryptocurrency transaction by solving complex mathematical equations, and they are rewarded with crypto currencies as a result of their efforts.

This procedure necessitates the use of large computers and other equipment, as well as a significant quantity of energy. As a result, an increase in mining operations in Venezuela has drew international attention. Why is the oil-rich country suddenly attracting cryptocurrency miners?

Crypto mining is proving to be incredibly profitable in Venezuela, a country plagued by economic uncertainty and a high unemployment rate, with electricity prices as low as 0.06 cents per kWh.

In addition, inflation is nearing 3,000 percent. As a result, some people are willing to stake everything on this technology, despite the fact that virtual currencies are notorious for their volatility.

While the allure of quick money is luring Venezuelans into the mining industry, not everyone can work as a miner in the South American country, where the minimum salary is roughly $10. Many people do not have the financial means to put together the necessary equipment to mine cryptocurrency.

Other issues exist as well, such as frequent power outages and sluggish internet rates. These impediments, however, are insufficient to prevent Venezuelans or damage a burgeoning crypto mining sector.

For several years, Venezuela's currency, the bolivar, has been plagued by hyperinflation, and it has continued to depreciate against the US dollar. Many people regard bitcoins as a path out of hyperinflation.

Venezuelan President Nicolas Maduro had already established the 'Petro' cryptocurrency in 2017. Petro, he added, would clear the path for his administration to get through what he dubbed the United States' "financial siege" of the South American country.

Despite the president's best efforts, Petro has yet to gain consumer or investor trust. Venezuelans, on the other hand, have taken an interest in Bitcoin.