Bitcoin Mining Around the World: Africa
"From Ethiopia, to Kenya, to Nigeria, and beyond, Africa is quietly emerging as a Bitcoin mining hub," writes the Hashrate Index in its latest report.
- "Many African countries have aging or underdeveloped infrastructure, which creates difficulties with transmitting power from electricity generating assets to end consumers; some African countries have political concerns that stem from corruption or general socio-political instability; and others still come with cultural, commercial, and linguistic barriers that miners may find difficult to clear. "
"But in these weaknesses lie the strengths that will make Africa a prime destination for Bitcoin miners in the years to come. Because it is so under explored, there are plenty of opportunities for miners looking to tap new markets."
- "Because many countries have difficulties transmitting power, there are plenty of energy generating assets that are underutilized. Miners can consume electricity close to power sources, which can fund utility companies and governments to build transmission and distribution for other consumers."
- "Additionally, many African countries employ so-called minigrids to provide electricity to underdeveloped, mostly rural areas, and Bitcoin mining is emerging as a promising method for making these minigrids financially sustainable, while also generating revenues to invest further in these underserved regions."
- "We believe that the countries detailed in this chart provide Bitcoin miners with the greatest opportunities and potentials for future growth."
- "As the 2024 Bitcoin halving comes to pass and miners increasingly look to under-explored countries, Africa’s abundance of under-tapped hydroelectric energy and its minigrid infrastructure could present attractive opportunities for hashrate expansion on the continent in the years to come."
- "The biggest challenge for miners in Africa comes from the shifty regulatory and political landscapes inherent to most African countries. "
- "Importation is another key hurdle for miners to clear. As we discussed with Malawi, many African countries levy high importation tariffs, which can make it prohibitively expensive for miners to import rigs and necessary infrastructure. "
