The Next Pampa 2.0 will be the first “Crypto Building” in the world. In the basement, there is a bitcoin mining farm that will help pay for all the maintenance a modern building needs. They also plan to show NFT in the lobby and other things. Is the real estate project trying to be “the first in the world” in something? Or are the builders onto something here?
The construction of the crypto building will start in Belgrano, Buenos Aires, in the second quarter of 2022. It will have “more than 100 apartments, with 2, 3 or 4 bedrooms, and many of them have already been previously sold” for around $120K for one of 2 bedrooms. Does that price get you a piece of a bitcoin mining operation as long as you hold ownership in the crypto building? That is what it seems.
According to to Interesting Engineering, the Next Pampa 2.0 “can be described as a 24-story “smart” building with a Bitcoin mining farm in its basement, whose objective is to generate income for the building’s operations, allowing it to cover the cost of the building. maintenance and upkeep, and saves its residents the costs of having to do it themselves.” It’s worth noting that the crypto building “will also display different pieces of NFT art as decorations in its lobby.” So it’s not a bitcoin-only project.
What about the volatility of Bitcoin?
To address the issue of volatility, the publication consults with Damian Lopo, main developer of the Next Pampa 2.0 project. He knows what to do. “To deal with this, the plan is to calculate an average price for Bitcoin over the last 12 months and use that average price to scale the mining farm in a way that will theoretically allow the mining operation to cover 100% of the cost of mining expenses. building.”
Likewise, David Farías, general director of Landium, the real estate agency behind Next Pampa 2.0, believes that the bitcoin mining operation will generate more than what the construction needs. “The surplus could then be distributed among the residents; the crypto building could end up “paying residents” to live in it. “It’s a way of giving back to our customers,” said Landium’s CEO.
BTC price chart for 06/02/2022 on Eightcap | Source: BTC/USD on TradingView.com
Solar panels of the Crypto Building
In some respects, Argentina is a good ground for crypto construction. For example, in the capital, the government subsidizes energy and therefore it is cheap. In some other respects, the bitcoin mining strategy could turn out to be wrong. “Currently there are no laws regarding crypto mining, but Damián Lopo does not rule out that possibility.” Argentina recently signed an agreement with the IMF in which they promised to curb crypto adoption in the country.
On the other hand, there are ESG risks. Some people think that Bitcoin is not worth it and that participants in the network should not be able to use electricity. However, they ignore the subtle relationship between bitcoin and green energy. They always appear hand in hand.
In this case, “Damián Lopo expects Next Pampa 2.0 expenses to be up to 50% lower, since the building will be powered entirely by solar panels, from LED lights in common spaces to preheating systems to heat water. . that the residents will use. Green energy will power all of that plus bitcoin mining. Great, but what is the fundamental difference between the crypto building and a normal building with home bitcoin miners among the tenants?
Featured Image by Nestor Barbitta on Unsplash | Charts by TradingView