Venezuela Adopting a Bitcoin Standard as Military Builds a Bitcoin Mining Farm
Is Venezuela moving towards a Bitcoin standard? It appears so after its military, the Bolivarian Army, created its own Bitcoin mining farm, all with the backing of the government regulator, Sunacrip.
Assembled by the military, the Bitcoin mining farm will mine BTC and a few other cryptocurrencies, to help generate what it calls ‘unblockcable income’ to get around US sanctions.
The news came via the Bolivarian Army’s Instagram page, which released the news with a short statement and video clip of the Bitcoin mining farm.
‘The Center for the Production of Digital Assets of the Bolivarian Army was inaugurated by the 61st GB Agustín Codazzi Engineers Conditioning Brigade,’ said the statement.
The inauguration was led by Bolivarian Army General Lenin Herrera, Commander of the Brigade, and Major General Domingo Hernández Lárez.
The Instagram video and accompanying statement explains the Bitcoin mining operations and the necessity for the organization to do so.
‘For the sake of strengthening and self-sustainability of our Bolivarian army,’ said the statement. ‘The harvesters of the 61st Agustín Codazzi Engineer Conditioning Brigade, proudly present the technological project of the Army’s digital asset production center.’
‘In perfect civic-military alliance, the project that represents an unblockable source of income, has mining farms and a refurbishment line, which allow the production of cryptocurrencies in real time, ensuring the generation of income for the well-being of our staff.’
Is Venezuela Preparing Itself for a Bitcoin Standard?
The mining centre has the support of the Venezuelan government, which passed an anti-blockade bill in October.
The bill provides the Venezuelan government ‘an instrument to shield the economy of the country from the constant onslaught of the United States government, which seeks to destabilize the country,’ according to the legislator spokesperson.
And it appears that the military’s Bitcoin mining farm is the first benefactor of the new law, which General Lenin Herrera said had been created to ‘defeat the fiat system’.
‘These local mining farms and the miners’ refurbishment line allow production in real-time, defeating the fiat system, blocked and managed by colonialist interests that have affected the Venezuelan people,’ said the general.
This along with recent news that Pizza Hut was now accepting Bitcoin in Venezuela, it seems like the oil rich state is racing to be the first to fully adopt a Bitcoin standard.
Pizza Hut has joined other multinationals Burger King and Intercontinental Hotels in accepting Bitcoin payments, as a lack of confidence in the hyperinflated bolivar made it impossible to use.
First Multi-Nationals, Now The Venezuelan Government Behind Bitcoin Adoption
Venezuela is the ideal candidate for the first nation sate to adopt Bitcoin. Cut off from world trade by US sanctions, a hyperinflating currency, and copious amounts of energy they can’t export…
Now they are realizing they can turn that energy into value, and earn an asset that is valued and tradable worldwide.
The Venezuelan government know this, and they see it as their only way to avoid a complete economic crisis (or to line their own pockets). And so they have quickly issued new laws so they can turn their resources into Bitcoin.
I expect this Bitcoin mining farm to be the first of many Venezuelan government run farms. What else is it going to do with its excess energy?
Will Venezuela be the first nation state to announce it is holding Bitcoin? Only if it beats Iran to it.
Author: Tommy Limpitlaw
What is the point of Bitcoin?
Bitcoin is a decentralized money. A money that nobody can control or manipulate, and a money that nobody can print and devalue. It’s also not necessary for any third party to verify transactions, so it makes it much faster and cheaper to send value. It’s also money built on the Internet: a society of almost 5 billion people.
Can you lose money on Bitcoin?
You certainly can lose money on Bitcoin. Many new investors see the gains Bitcoin has made and expect it to always be so. But the truth is, Bitcoin’s gains have come from buying Bitcoin and holding on long term and riding the market. People expecting only gains, quickly lose faith when it crashes and lose money. The best way to avoid losing money is buy Bitcoin and hodl.
Why should I buy Bitcoin?
People who understand Bitcoin buy Bitcoin because it is a peer-to-peer money that nobody can manipulate. It’s all set in the Bitcoin codebase which is secured by hundreds of thousands of computers all around the world. Bitcoins can be sent by anybody and no third party is need to verify the transactions, and nobody can stop Bitcoins being sent. There are many more reasons why people buy Bitcoin, and a deeper dive before doing so is recommended.
Can you buy less than 1 Bitcoin?
Yes. Every Bitcoin can broken down into 100 million bits. They are known as satoshis, after the pseudonymous creator Satoshi Nakamoto. And some companies will let you buy as little as $1 worth of Bitcoin, which at time of writing is worth about 11,000 satoshis. There are many companies that have a system for dollar cost averaging (DCA). This is a great way to buy Bitcoin, and is known in the space as ‘Stacking Sats’. Basically, what you do is set up small automatic, recurring payments to buy Bitcoin (or sats), and you DCA over time.