Professional miners explain whether or not it is possible to mine Bitcoin in Brazil and make money from it

The proposed regulation of the cryptocurrency market in Brazil, popularly known as “Bitcoin Law”, is close to being approved and becoming law in the country and, among the points that new legislation can address is the tax exemption for the import of cryptocurrencies mining machines.

However, Crypto mining is not just about buying a machine, turning it on and making money. It involves other points such as energy consumption, the place where the equipment is installed, maintenance costs, cooling or temperature control of the environment, in addition, of course, to the price of the Bitcoin and the miner’s expectations.

To find out whether or not it is possible to mine Bitcoin and cryptocurrencies in Brazil and, with this activity, earn money Cointelegraph Brasil spoke with two professional miners, both with mining operations outside the country: Raymond Nasser, CEO of Arthur Mining and Bernardo Schucman, senior vice president of the American mining company’s digital currency division CleanSpark.

“First of all, Brazil is Brazil. Undertaking in a bureaucratic country with high tax rates is not for amateurs and needs detailed planning. Energy is expensive, YES. However, machines are getting more and more efficient, making it more viable to mine , even with more expensive energy,” Nasser said.

Schucman also points out that energy may not be a major barrier to Bitcoin mining in the country, however, changes are still needed for the cost of energy to be viable in Brazil.

“We have a region near Itaipu that would be ideal for the activity and today we sell this energy and opportunity to Paraguay, which is slowly expanding its cryptocurrency mining network. Governments have to understand that along with the implementation of the mining companies, there is a consequent expansion of modernization of these power grids and which has been very well used by countries like the USA that are taking advantage of this new “power grids” and expanding their local industries”, he pointed out.

Is it possible or not to mine Bitcoin in Brazil and make money from it

Nasser points out that the logistical issue is a factor that miners need to be aware of, however, the tax reduction for the purchase of mining equipment in the country can be an attraction compared to other nations in the region.

“The import tax for bitcoin mining machines has just been removed, which creates a cascade of discounts on other taxes. However, this happened two weeks ago, so the scenario could change drastically”, he points out.

He also highlights that as most of the equipment comes from Asia, the problem is not to import the machines to Brazil, the problem is to ‘untangle’ the process.

“You need an experienced and proactive dispatcher. Machine down = loss of money”, he points out.

Schucman also points out that the tax exemption for importing machines, such as the famous ASICs, can be an attraction for the sector in the country

“Another major trade barrier to stimulate the movement of miners to Brazil is the tax on imports of electronic equipment, which for the most part are the highest tax rates in the world and cause a direct impediment to the growth of this industrial activity in Brazil,” he said.

Mining Bitcoin in your garage is still unfeasible

Nasser points out that mining is not something ‘for amateurs’, that is, mining Bitcoin in the garage at home is not feasible not only in Brazil but in other nations.

“The price of machines fluctuates with the market. The dollar makes everything expensive, but its profitability is in Bitcoin, which makes the dollar cheap and, consequently, the real as well. Even so, mining in retail and in your garage continues being unfeasible, no matter where you are,” he said.

In addition, he highlights that mining operations demand scale and millimetric planning and believes that the companies that supply energy will soon be the great Bitcoin miners in the country.

“20% of the energy generated in Brazil today is not used, and this represents about 56 billion reais per year. A silent revolution is taking place where energy companies will mine bitcoin with their surplus energy, reducing spending and increasing profitability. A strong paradigm shift is coming”, he said.

Bernardo follows in the same vein and points out that Bitcoin mining currently consists of investments by institutional investors who normally have strict “guidelines” to allocate their resources.

“Brazil has historically proved to be too slow and bureaucratic to assess and pass laws for new sectors of the economy. We live in a political and legislative structure that is averse to changes and “new business”. To place Brazil on the international cryptocurrency mining scene it would be necessary to create multidisciplinary groups involving businessmen, legislators and scientists for further study and implementation of a set of measures such as specific laws, clear tax treatment and tax incentives so that global investors in the segment would look at Brazil with good eyes”, he said.

Schucman ends by saying that Brazil may be ‘wasting time’ because it does not know how to take advantage of the opportunity that the mining industry offers.

“Further clarification is needed for Brazil to glimpse the window of opportunity that is being left out because we do not have a deep understanding of the cryptocurrency mining activity”, he concludes.