Paraguay Braces for Bitcoin Mining-Driven Energy Crisis
Paraguay's energy grid is facing a potential crisis due to the growing demand from bitcoin mining operations, which currently consume 30% of the country's power production. According to experts, this trend could lead to an energy generation crisis by 2029 if hydrological conditions remain favorable and mining activities continue to grow.
During the 'Accelerating Bitcoin' conference, Victorio Oxilia, an energy researcher, revealed that bitcoin mining consumes the equivalent of a turbine and a half from one of the world's largest dams, Itaipu. The country's 100% renewable energy blueprint from hydroelectric sources has made it a popular destination for bitcoin miners.
Paraguayan authorities are also cracking down on illegal power theft related to bitcoin mining, with officials registering convictions for these crimes. However, experts warn that the country needs to invest heavily in its energy infrastructure, with estimates suggesting a $15 billion funding gap over the next 13 years to meet growing demand.