VanEck: Argentina, UAE, and Ethiopia Embrace Bitcoin Mining

BRICS is a group of countries including Brazil, Russia, India, China, and South Africa, and recently, Argentina, the United Arab Emirates (UAE), and Ethiopia joined in.

These last 3 nations are starting to mine Bitcoin using government resources to support their efforts. Meanwhile, Russia is stepping up too – the country’s sovereign wealth fund, which is like a big national savings account, is putting money into Bitcoin mining.

What is Bitcoin Mining and Why Are Countries Mining Bitcoin?

It’s a process that uses powerful computers to solve complex puzzles, adding new Bitcoin to the network. The miners get rewarded with Bitcoin for their hard work. Mining Bitcoin requires a lot of electricity and computer power, so it isn’t easy or cheap. But for some countries, it’s worth the effort.

Argentina , UAE, and Ethiopia are mining Bitcoin to create extra income and to find alternatives to using the U.S. dollar. As VanEck, a well-known investment firm, pointed out, countries like Argentina, UAE, and Ethiopia are getting involved because they’re feeling the squeeze from unstable financial systems and economic struggles. By mining Bitcoin, they aim to gain a bit more financial independence.

VanEck says BRICS members Argentina, UAE and Ethiopia are now mining #Bitcoin with government resources and that Russia’s sovereign wealth fund is investing in BTC mining 🚀

“There is tremendous urgency outside of the US to find a way to circumvent the irresponsible fiscal… pic.twitter.com/2iS9Ny4zrI

— Simply Bitcoin (@SimplyBitcoinTV) October 28, 2024

In Russia’s case, the country’s big national fund is investing in Bitcoin mining as well. This move shows that Russia wants to have a bigger hand in the Bitcoin world, likely to avoid some of the effects of U.S. sanctions and to strengthen its economy. When times get tough, countries are looking for ways to shake things up – and Bitcoin might be part of the solution.

The Push Away from the U.S. Dollar

Many countries outside the U.S. feel like they’re getting the short end of the stick with the American dollar. Some of these nations think the U.S. government’s spending and debt are out of control, and they want a backup plan in case things go south. Bitcoin offers them a way to move money outside of the traditional system, without relying as much on the U.S. dollar.

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