Although cryptocurrencies are not yet considered legal tender in Argentina, their emergence and growing popularity is not only attracting the attention of more and more companies (with Banco Galicia as the last representative), but also a growing interest in the new profitable activities associated with them. Low pensions are not the only problem facing Argentina`s economy. According to the latest report by the National Institute of Statistics and Census (INDEC), 37.3% of the population lives below the poverty index. Andrew Cartaya spoke about the supply chain issues of the devices used to mine Bitcoin and other cryptocurrencies. He says import barriers, excessive taxes, tariff delays and fears of possible demands from federal authorities „mean that local miners do not see Argentina as an attractive destination.“ In this context, mining consists of a technological process in which digital currency transactions are carried out and reflected in the blockchain, which is the technological basis for all these virtual investments. It can be mined with graphics cards or with „ASIC miners“, a type of hardware and machine designed specifically for Bitcoin (BTC). Cartaya considers it unlikely that the mining of Bitcoin and other cryptocurrencies will consolidate as an industry in Argentina, as investors „activate all alarms“ when they perform a risk and force analysis in the Argentine case. Indeed, they face divestments, a lack of infrastructure, legal and patrimonial uncertainty and political uncertainty, which are factors that can quickly affect investment. On the other hand, you can find explanatory guides on the website to learn how to hit from scratch with CPU, GPU and ASIC and what types of software are used to track mining in real time, such as NiceHashOS. In the case of mining, the source of cryptocurrencies is considered Argentine, since it is carried out on the territory of the state. But a doctrinal crossover occurs in the sale of mined cryptocurrencies, should they be considered Argentinian or foreign? This is also somewhat difficult to determine because, as explained in the document above, „most do not have a central transmitter“.
But Bitcoin miners are even more expensive than the graphics cards used for Ethereum: an ASIC, the device used to mine the popular cryptocurrency, can cost between $2,500,000 and $3,500,000 in Argentina. Do you want to continue learning how to mine cryptocurrencies in Argentina? Read: How cryptocurrencies are obtained. The first response of the lawyers and tax specialists consulted is: „This is a legal transaction in the country.“ But they immediately make it clear that „miners“ or new „mining farms“ are developing an activity that is not explicitly classified as such in Argentina. No one will say that he is illegally dismantling industrial parks, offices or homes simply because he has received a letter from a public body. It`s like responding to a letter from the central bank asking if this address functions as a cave (illegal exchange offices) to sell dollars. Still, we understand that officials are doing their best,“ Holmes said. To validate and „mine“ cryptocurrency exchanges, miners solve complex mathematical problems. And they deserve a reward in exchange for the time and energy they have put into solving this difficulty. That is, if Ethereum is updated in the new layer, it cannot be mined, so Ether cryptocurrencies are deposited for an indefinite period of time and the mining hardware in this network is obsolete. During peak periods of consumption, there are frequent cuts in supply that reduce profitability, delay the resumption of investments and lead to equipment breakdowns, which are also very difficult and expensive to obtain due to the great inefficiency of Argentine customs.
In Argentina, although the regulations are not yet clear, the marketing and use of cryptocurrencies is legal. In these types of trade, there is the practice of mining. Bitcoin can also be obtained by legal tender (peso, euro, dollar, among others) or by exchanging goods and services with other users, i.e. traditional buying/selling. The easiest way is to use companies like the Argentinian Aerobox. The process is simple: once the account is created on the platform, users of the site can shop on various e-commerce sites around the world, from Amazon to Alibaba. The company receives the packages at a virtual address in Miami and consolidates the packages. Its interpretation is that if a human person resides in Argentina and invests in equipment and creates the necessary infrastructure to operate in the country, must pay profits. „The units you get from cryptocurrencies are the consideration for the mining service you provide to the network of the same,“ he observes. The address where the mining equipment was located in the province of San Juan appears in the name of the mother of the person in charge. It was also found that the meter recorded a relevant electrical energy consumption corresponding to that generated by the processors and graphics cards required for the extraction process. Cartaya insisted that the profitability of cryptocurrency mining in his country is very low, „and everything indicates that this will increasingly be the case.“ This is despite the fact that mining machines are becoming more and more efficient.
„Argentina experiences a different reality from the rest of the region and offers an unattractive cocktail for miners,“ he said. One of them is the mining of crypto-activists, that is, the use of computers for „collaboration“ with the validation of transactions in exchange for a reward in digital currency. Activity in the country has continued to grow, although some questions arise about the legal and fiscal framework.