August 25, 2017

CAPITALISM ALWAYS FINDS A WAY: Cash is useless in Venezuela thanks to hyperinflation — so people are turning to bitcoin.. “Bitcoin miners can make as much as $500 a month, which is enough to afford things such as baby diapers and insulin from overseas.”

As Venezuela suffers its worst meltdown in history, with inflation skyrocketing and basic necessities running in short supply, many have taken to bitcoin mining in a bid to survive, according to a report in the current issue of the Atlantic.

The reason? Electricity is now cheaper and more affordable in the crisis-hit country than most basic goods. That’s because under President Nicolás Maduro, electric power is heavily subsidized to the point that it’s essentially free, the Atlantic said.

Bitcoin mining works like this: Miners use computer hardware to perform complex computations that ultimately create each new link in the bitcoin blockchain — the massive, decentralized ledger technology that underpins the cryptocurrency. In return, they are rewarded with bitcoin. One of the key requirements to mine bitcoin is to have a large supply of power.

Cheap power might be Maduro’s last remaining, reliable bribe to keep himself in power.

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