Seeing as that over 500 Million people in Africa live in rural communities out of reach of main power grids, mining Bitcoin (BTC) has been a challenge. Nonetheless, it has likewise sparked some creative solutions that can potentially not only solve the issue of Bitcoin (BTC) mining but likewise provide reliable electricity access in general.
Nonetheless, one of these solutions has been to build microgrids powered by energy from renewable sources sources, and their potential has attracted both hobbyists and corporations interested in mining Bitcoin, Nigerian Bitcoiner and CEO of a Bitcoin (BTC) deal financial resources fund Recursive Financial resources, Abubakar Nur Khalil, stated in his Forbes piece on May 24.
Hydropower minigrids
Reports by Khalil, one example is the Kenyan Bitcoin (BTC) mining company Gridless which deploys hydro-powered microgrids (with a capacity of under 1 MW) to power 3 rural communities in East Africa and has recently reached more Kenyan communities thanks to the seed financing led by Jack Dorsey’s Block and Bitcoin (BTC) VC company Stillmark.
In addition of that, Gridless has likewise created the Green African Mining Alliance (GAMA) with 3 other corporations – QRB Labs from Ethiopia, Sukuma Ventures from Kenya, and Trojan Mining from Nigeria – with the goal to create a standardized approach to sustainable digital currency mining.
Together, these corporations released the ‘Blueprint for Bitcoin (BTC) Mining and Energy in Africa’ report earlier in May, featuring actionable insights for “ reducing the electricity-access gap in underprivileged regions with minigrids and small-scale Bitcoin (BTC) data centers.”
Reports by the report:
“By supplying a consistent and reliable demand for electricity, Bitcoin (BTC) mining helps to utilize excess energy from renewable sources that can potentially otherwise go to waste, thereby unlocking the capacity of stranded energy from renewable sources projects and contributing to a more sustainable energy future.”
Interestingly, Finbold has earlier informed on the Virunga National Park in eastern Congo using its hydroelectric power for mining Bitcoin (BTC) in an attempt to provide the financing required to keep it afloat in the area influenced by years of militia violence, deforestation, diseases, and lockdowns.
Regulatory uncertainty in Africa
That stated, mining operators in Africa are facing a lack of regulatory clarity around their activities, and numerous choose to go off the grid in fear of drawing attention to themselves rather than joining public-facing corporate settings like GAMA.
Additionally, even larger Bitcoin (BTC) miners have issues with the regulatory authorities and authorities, ranging from the inability to obtain energy development licenses from the Government to the high costs of importing the hardware necessary for cryptocurrency mining.
Nonetheless, regardless of regulatory hurdles affecting the cryptocurrency sector, the blockchain tech community in Africa is thriving and has continued to attract substantial investments, which have recorded a five-fold increase on the yearly level, demonstrating the VC interest in African blockchain tech corporations that has been present since mid-2022.
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