Bitcoin mining has become crucial to the economic development of Africa, the third largest continent in the world.
Economic development is essential to ensure the well-being of society and in Africa, Bitcoin mining is playing an important role in accelerating the growth of economies and closing the existing gaps in the traditional financial system.
Countries like Ethiopia, Malawi, Congo y Nigeria They are relying on Bitcoin mining to improve the quality of life of their citizens, connecting different communities to electricity, promoting financial inclusion and ensuring environmental conservation.
The rise of cryptocurrencies and Bitcoin mining in Africa
With the first explosion of cryptocurrencies in 2017, many people started to get interested in this new and emerging class of digital assets. The price volatility in the market, the decentralization and immutability that blockchain technology allows in transactions, are some of the reasons why cryptocurrencies started to gain increasing interest.
However, cryptoassets have not only attracted the attention of ordinary people, but have also sparked genuine interest in companies from different fields and industries, and even in several countries around the world.
Specifically, in Africa, several companies and some governments They have recognized the potential of cryptocurrencies and the mining of these digital assets., both in the economic and energy sectors. This recognition has led to the creation of new projects that seek to take advantage of all the benefits of the crypto industry in favor of development and economic growth.
Monetizing surplus electricity
In Ethiopia, the current government has turned its attention to crypto mining as a way to monetize its abundant hydroelectric power reserves and thus accelerate its economic growth. According to a article published by Bloomberg last month, Ethiopia has emerged as a promising and flourishing destination for Bitcoin miners, mainly for those who left China following its crackdown on cryptocurrency-related business activities.
Currently, Ethiopia is relying on Bitcoin mining to monetize its surplus hydroelectric energy. The state energy company, Ethiopian Electric Power, has already signed agreements with more than twenty crypto mining companies, which is favoring the transformation of the country into a paradise for crypto miners looking for sources of income. abundant and affordable clean energy.
Recently, Ethiopia launched the Grand Ethiopian Renaissance Dam, where, according to Bloomberg, a significant amount of Bitcoin mining equipment has already been installed. From this dam, the largest in Africa, the Ethiopian government will provide electricity to Bitcoin miners at affordable prices, to take advantage of the crypto industry and open up a potential source of foreign currency.
Connecting communities to basic services
On the other hand, in Malawi, small-scale Bitcoin mining is connecting thousands of families to one of the most important basic services in today's society: electricity. In the country, located in southeastern Africa, the company Gridless has managed to connect more than 1.600 families to the electricity grid through BTC mining. As reported by this media in early 2023, Gridless has created a mini hydroelectric grid that feeds Bitcoin miners and provides electricity to local families.
Recently, the company, which supports energy development across the continent, published a study which highlights how Bitcoin mining mini-networks are ensuring the use of stranded renewable energy in Africa, tackling energy waste and driving cost-effective electrification of communities without the need for government aid or charitable organizations. With this, Bitcoin mining is also contributing to a more sustainable energy future, he said.
Source: “Energy & Bitcoin in Africa” report, by Gridless
Promote the conservation of species and habitat
In addition to monetizing energy resources and supplying electricity to communities, Bitcoin mining is also helping species conservation in AfricaSpecifically, in the Republic of Congo, the Congolese Institute for the Conservation of Nature (ICCN), which oversees the development and maintenance of the Virunga National Park, the oldest in Africa, has taken a proactive stance towards Bitcoin mining for generate recurring income and preserve wild species that live in it.
Such has been the impact of Bitcoin mining on the national park, that has earned recognition from the World Economic Forum.
Recently, the international organization he highlighted the innovative initiative of the national park, which began mining bitcoins in 2020 as an alternative to generate income for sustainability. The profits that the park obtains through this activity are destined for its maintenance and operation. As reported by this media, the Virunga National Park is the first to mine bitcoins as a strategy to maintain its operations and preserve wildlife. Emmanuel de Merode, director of the national park, commented last year that if it were not for Bitcoin mining, they would have already gone bankrupt as a national park, since the Congolese government does not provide the necessary resources to maintain its operation.
In 2023, de Merode revealed in an interview with MIT Technology Review that the national park was generating close to $150.000 a month from Bitcoin mining.
A valuable industry
The arrival of Bitcoin and cryptocurrencies marked the beginning of a new technological era, which has not only created new forms of money and payments, but is also fostering the empowerment of local communities, economic growth and energy transformation.
Cryptocurrencies have enabled the development of an alternative, inclusive, global and decentralized financial system, as well as the development of new tools that are accelerating the transformation of society in different areas. Today, as Gridless points out in its study, cryptocurrencies have become a central part of the lives of Africans.
Continue reading: Bitcoin Price Hits New All-Time High of $70.083
