Chinese Bitcoin miners are moving to Ethiopia because it has low energy costs and good laws, which is beneficial for the business as a whole.
A new center for their activities has emerged on the Horn of Africa: Ethiopia, where Chinese Bitcoin miners have set their sights. This change in focus is a response to tighter restrictions and higher power prices in other regions of the globe. Ethiopia has recently emerged as an appealing location because of its cheap energy prices and more friendly government policies.
Chinese Bitcoin miners, fleeing economic and political upheaval in other regions, have flocked to the Grand Ethiopian Renaissance Dam, the biggest dam in Africa. It is evident that the nation is becoming more prominent in the cryptocurrency mining business since there are shipping containers nearby that are full of high-performance computer equipment.
Ethiopia is attractive for more than just its cheap electricity; the government is warming up to the cryptocurrency business by being receptive to Bitcoin mining, even if trading cryptocurrencies is illegal in the country. Chinese participation in the $4.8 billion dam project highlights the country’s promise as a center for crypto-mining operations that provide cheap electricity.
A total of 21 Bitcoin miners, the majority of whom are Chinese, have struck arrangements with Ethiopia’s state power monopoly, thanks to the country’s cheap energy. Ethiopia presents a unique opportunity for companies seeking to preserve their competitive advantage in Bitcoin mining, especially when considered against the background of worldwide issues confronting the sector, such as power shortages and environmental concerns.
But there are dangers associated with the move towards Ethiopia. When the energy demands of Bitcoin miners start to outstrip local requirements, public dissatisfaction and governmental crackdowns ensue, as seen in Iran and Kazakhstan nations that were first accepting of mining may swiftly reverse their attitude. The growth of Bitcoin mining is a sensitive topic in Ethiopia since roughly half of the population does not have access to energy.
Also Read: FTX plans to sell a $10 million subsidiary it purchased to CoinList for $500,000 February 11, 2024
Wallets