African crypto revolution continues as Ethiopia ranks among global BTC mining leaders

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As a seasoned analyst with extensive experience in analyzing global economic trends, I find Ethiopia’s foray into Bitcoin mining to be nothing short of revolutionary. Having spent years studying Africa’s growth potential and its untapped resources, I can confidently say that Ethiopia’s success story is a testament to the continent’s immense capabilities.

The country’s strategic decision to leverage its Grand Ethiopian Renaissance Dam for Bitcoin mining not only showcases innovative thinking but also demonstrates a forward-looking approach towards sustainable development. It’s fascinating to see how Ethiopia has managed to strike a balance between harnessing the power of cryptocurrency, financing infrastructure development, and maintaining environmental sustainability.

What’s more intriguing is that Ethiopia has set a precedent for other countries, particularly those in Africa, to follow suit. The potential for other African nations to replicate Ethiopia’s model and capitalize on their renewable energy sources is immense. This could potentially spark a fintech revolution across the continent and open up new opportunities for economic growth.

On a lighter note, I can’t help but chuckle at the irony of a country where only half of the population has access to electricity generating billions from Bitcoin mining. It’s as if Ethiopia is saying, “We’ve got plenty of spare power, so why not mine some Bitcoins?” Indeed, it seems that the future of Africa is brighter than ever, and I can’t wait to see what other surprises this continent has in store for us!

2024 marked a significant turning point for Ethiopia, earning approximately $1 billion from Bitcoin mining thanks to its abundance of affordable, dependable, and eco-friendly energy resources.

Africa serves as a hub for fintech companies that are generating billion-dollar profits by offering digital payment solutions to both individuals and merchants who lack traditional banking services due to their high unbanked status and widespread smartphone usage. Companies like TymeBank, Moniepoint, and Opay have achieved significant success by developing mobile payment apps and physical touchpoints in regions where banks are scarce (approximately 80% of Africans do not possess bank cards). In these areas, digital money solutions are becoming increasingly popular as an alternative to traditional banking methods, with cryptocurrency playing a role in shaping the contemporary financial landscape of the continent.

Ethiopia entered the global BTC mining top 

2023 statistics from Intellinews show that merely 35% of Ethiopians owned bank accounts, yet this did not hinder the nation from rising as a global leader in Bitcoin mining. In 2024, Ethiopia made history by launching Africa’s first large-scale government-supported cryptocurrency mining operation. By 2027, it is projected that this venture could generate up to $5.4 billion in revenue.

One key factor fueling Ethiopia’s achievements in the sector is the Grand Ethiopian Renaissance Dam, a massive gravity dam slated for completion on the Blue Nile River by 2024. This dam, known as GERD, ranks among the world’s top 20 hydroelectric power plants and is Africa’s largest. It powers the entire nation and generates excess electricity for export to other countries.

Critics of Bitcoin often highlight its high energy consumption, with many mining activities taking place in countries where electricity is cheap and predominantly sourced from polluting fossil fuels. Contrastingly, Ethiopia uses affordable, clean energy from the Grand Ethiopian Renaissance Dam (GERD) for Bitcoin mining. It’s worth noting that only half of Ethiopia’s population has access to electricity. This implies that a substantial amount of surplus energy can be directed towards Bitcoin mining.

2024 saw Ethiopia earning a billion dollars from Bitcoin mining activities. The revenues derived from these digital mining operations are instrumental in upholding the Grand Ethiopian Renaissance Dam (GERD) infrastructure. As reported by Happy Coin News, this mining operation represents approximately 18% of the nation’s yearly income for that particular year.

18% of Ethiopia’s income is generated from Bitcoin mining, which is facilitated by the nation utilizing its self-owned Grand Ethiopian Renaissance Dam (GERD) hydropower station for cryptocurrency mining purposes. Learn more here: [Source]

— Happy Coin News ☣️ (@happycoinnews) December 28, 2024

In October, Ethan Vera, COO of Luxor Mining, highlighted the primary factors contributing to Ethiopia’s mining sector success. These elements include affordable electricity and the employment of mid-generation mining equipment that are energy-efficient and cost less than contemporary machines. As per Vera, the predominantly used models in Ethiopia are Bitmain’s S19J Pro and Canaan’s A1346.

The Ethiopian blueprint 

By the year 2024, Ethiopia accounted for approximately 2.25% of worldwide Bitcoin mining power, making it the fourth largest contributor following the United States, Hong Kong, and other parts of Asia, as reported by Luxor Mining.

The achievement of Ethiopia shows that governments can employ cryptocurrency for financing infrastructure projects and boosting local economies. Remarkably, Ethiopia has emerged as a leading Bitcoin mining country without harming environmental sustainability. This is noteworthy since green mining prioritizes access to clean energy and uses profits for renewable energy sources development, creating a beneficial situation for all parties involved.

As Ethiopia strengthened its mining sector, other nations paid attention. For instance, the Democratic Republic of Congo plans to establish an eco-friendly mining operation within Virunga National Park. On the other hand, smaller countries are establishing local energy networks to sustain small-scale mining activities. Organizations such as Gridless and Trojan Mining are also making strides in promoting environmentally friendly Bitcoin mining across Africa.

Ethiopia is leading the charge among African nations in utilizing renewable energy for Bitcoin mining projects, a move that could invigorate local economies, accelerate financial technology advancements, and provide fresh opportunities for countries across Africa.

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2024-12-31 21:26