Chinese Bitcoin Miners Find a New Home in Ethiopia
Chinese Bitcoin miners have recently been relocating to Ethiopia due to the country’s low electricity costs and supportive stance on cryptocurrencies. Despite Ethiopia’s ban on cryptocurrency trading, the government has welcomed Bitcoin mining as part of its efforts to strengthen ties with China. Chinese companies, involved in major infrastructure projects in Ethiopia, will supply power to these miners, highlighting the growing partnership between the two nations.
Ethiopia: A Haven for Bitcoin Miners
In a time when the energy-intensive Bitcoin mining industry is facing global backlash, Ethiopia has emerged as an unexpected refuge for crypto firms. With concerns about climate change and power shortages, many countries are scrutinizing the industry. However, Ethiopia’s favorable conditions have attracted Chinese companies looking to regain their dominance in Bitcoin mining. Nevertheless, this move poses risks for both the companies and Ethiopia itself.
Cautious Approach by Ethiopian Authorities
While Ethiopian authorities recognize the potential economic benefits of Bitcoin mining, they remain cautious due to the country’s limited electricity access. Although Ethiopia has become a leading destination for mining equipment globally, nearly half of its population still lacks electricity. The state-controlled power utility has entered agreements with 21 Bitcoin mining firms, mostly Chinese-owned. This dominance of foreign investment in the sector highlights the delicate balance that Ethiopia must maintain.
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