Bitcoin mining booms in Argentina thanks to cheap electricity and capital controls
- Government-subsidised electricity in Argentina has made bitcoin mining more appealing as people seek ways of getting around capital controls
- Argentines have been using cryptocurrencies as a hedge against cyclical economic crises and a three-year recession that worsened during the pandemic

Bitcoin miners in Argentina are capitalising on the inefficiencies of the country’s interventionist economy to reap outsize returns, fuelled by memories of currency busts and powered by government-subsidised electricity.
While numerous countries have experienced booms in crypto mining this year, ultra-low utility rates and the resurgence of capital controls are helping supercharge profits for miners in the South American nation. For many experts, it’s yet another example of Argentines’ perennial ability to bend the nation’s heterodox policies to their advantage.
“Even after bitcoin’s price correction, the cost of electricity for anyone mining from their house is still a fraction of the total revenue generated,” said Nicolas Bourbon, who has experience mining digital currencies from Buenos Aires.
Cryptocurrencies have long been trumpeted in Argentina as a way for locals to hedge against cyclical economic crises, including repeat currency devaluations, defaults, hyperinflation, and now, a three-year recession made worse by the pandemic. In addition to cheap power, the return of foreign-exchange controls in recent years have given Argentines banned from buying dollars even more incentive to mine digital tokens, as surging demand for non-peso assets has sent the value of bitcoin skyrocketing to almost 5.9 million pesos in unofficial markets as of Sunday, versus about 3.4 million pesos at the official rate.

06:54
Is cryptocurrency too risky for China?
Miners are benefiting from the country’s long-standing residential electricity subsidies, a policy intended to win political points with voters yet one that’s increasingly fuelling tension within the ruling left-wing Peronist coalition.
Despite Argentina being a net importer of gas, consumer electricity bills are only about 2 per cent to 3 per cent of an average monthly income, compared to about twice that in other Latin American markets like Brazil, Colombia or Chile, according to Ezequiel Fernandez, an analyst at Balanz Capital Valores in Buenos Aires.