Paraguay is a landlocked country located in South America. It is bordered by Bolivia to the north and west, Brazil to the east and northeast, and Argentina to the south and southwest. Asunción, the capital and largest city of Paraguay, is situated on the eastern bank of the Paraguay River. Paraguay has a population of approximately 7 million people.
Paraguay has a diverse cultural heritage with influences from its indigenous Guarani population as well as from Spanish colonization. Guarani and Spanish are both official languages, and the country is known for its unique bilingual culture. Paraguay has a mixed economy with agriculture, manufacturing, and services sectors contributing to its GDP.
Paraguay has a rich history, including periods of indigenous civilizations, Spanish colonization, and subsequent independence. It has experienced political and social challenges throughout its history, including periods of authoritarian rule and political instability. However, it has made progress in recent years towards democratic governance and economic development.
Paraguay is known for its natural beauty, including the Chaco region, which is a vast, sparsely populated area of forests, savannas, and wetlands. The Iguazu Falls, a UNESCO World Heritage site shared with Brazil and Argentina, is also a popular tourist destination. Paraguay has a unique cuisine that combines indigenous and Spanish influences, with highlights such as chipa (a type of cheese bread) and sopa paraguaya (a traditional cornbread).
The 90% electricity from hydropower
Paraguay is known for its abundant and largely renewable energy resources, which contribute significantly to the country’s power generation. The primary sources of energy in Paraguay are hydropower and biomass.
Hydropower is the dominant source of electricity in Paraguay, accounting for approximately 90% of the country’s total electricity production. The Itaipu Dam, located on the Paraguay-Brazil border, is one of the world’s largest hydroelectric power plants and generates a significant portion of Paraguay’s electricity. Itaipu Dam is jointly operated by Paraguay and Brazil, with Paraguay receiving a significant portion of the electricity generated, which is used to meet domestic demand and for export to Brazil.
In addition to Itaipu Dam, Paraguay has other hydropower facilities, such as Yacyretá Dam and Acaray Dam, which also contribute to the country’s power generation capacity. These hydropower plants harness the energy of Paraguay’s rivers, which are abundant due to the country’s geographic location and topography.
Biomass is another important source of energy in Paraguay, particularly for cooking and heating purposes in rural areas. Biomass energy is derived from organic materials such as wood, agricultural residues, and animal dung, and is used for cooking and heating in traditional stoves and fireplaces in many rural households.
Paraguay has been recognized for its substantial renewable energy production, with a large proportion of its electricity coming from hydropower and biomass sources. The country has made efforts to promote renewable energy as a sustainable and environmentally friendly source of power, and continues to invest in the development of its energy sector to meet growing demand and ensure energy security.
Bitcoin miners are gathering in Paraguay
Bitcoin mining activities seem to start from early 2021. More Paraguay investors were trying to purchase bitcoin miners from China, including the spare parts such as control boards, power supply and cables. Because Paraguay is lacking of the electronics products, and they have to import all of those products to start.
Due to the cheap power rate, Paraguay investors prefer to invest in low-priced machines, even though high power consumption is the main factor to be considered by most of the bitcoin miners, but it’s not the biggest issue in Paraguay. So far around 513PH/s bitcoin hashrates are running in this country, which is 0.15% of global bitcoin hashrates. Paraguay has the big potential to be the next bitcoin miners hub in the near future. Of course we also need to know many factors may fluctuate the bitcoin mining activities, including market conditions, regulatory changes, technological advancements, and environmental factors.
Even though hydropower in Paraguay is attracting the global bitcoin miners, the drawbacks can not be overlooked. The high temperature and high humility in Paraguay may impact the machines effectiveness and shorten the lifespan of your machines.
Paraguay has a predominantly subtropical climate characterized by hot summers, mild winters, and high levels of precipitation. The climate in Paraguay can be broadly categorized into two main seasons: the wet season and the dry season.
Wet Season: The wet season in Paraguay typically lasts from October to March, with peak rainfall occurring in January and February. During the wet season, Paraguay experiences high temperatures, high humidity levels, and heavy rainfall, which can sometimes result in floods in some regions. The average temperatures during the wet season range from 24 to 36 degrees Celsius (75 to 97 degrees Fahrenheit), with high humidity.
Dry Season: The dry season in Paraguay generally lasts from April to September. During this time, the weather is typically drier and cooler compared to the wet season. The average temperatures during the dry season range from 15 to 30 degrees Celsius (59 to 86 degrees Fahrenheit), with lower humidity levels.
So far most of miners in Paraguay are air-cooling machines, we expect more hydro-cooling machines will be imported into the country due to its high temperature climate.
No specific laws related to Bitcoin mining yet in Paraguay
Paraguay does not have specific regulations or laws related to Bitcoin mining yet. But the country did not pass a bill that would have clarified ruled regarding the cost of electricity imposed on bitcoin miners. If the bill was passed, it would have limited outsized charges levied against bitcoin miners for their energy usage. So Paraguay like other countries, is also facing the risk of government policy legislation.
Events in Paraguay
Bitmain will hold their meetup activity in Paraguay on May 5. It’s the first time that a famous bitcoin miner producer hold industrial meetup in Paraguay, believe it will uncover more information for global bitcoin mining investors.