Generally, when we talk about bitcoin mining, we tend to focus only on the energy consumption that it requires. This has always been the subject of sulphurous debates between those who deplore its consumption and those who defend this activity stating that it is a much less energy-intensive activity than other industries.
The debate is complex because it involves an infinite number of data to analyze. However, the search for truth requires focusing on numbers and facts. And, precisely, the facts tell us that mining is becoming ever greener according to the report published by the Bitcoin Mining Council (BMC).
Even more, if we consider the facts once again, it turns out that bitcoin mining has “positive externalities”. Mining farms in isolated villages help boost the local economy and provide new sources of income for electricity suppliers.
Gridless is a company based in Ghana that operates various mining farms in villages in East Africa and particularly in Kenya. By insisting on a socially and ecologically ethical approach, Gridless only uses energy produced by renewable energies, mainly hydraulic energies. The company only consumes the energy produced in excess, which then makes it possible to finance the region's electricity system while making its cost more affordable for the villagers.
Functional pilot projects in African villages
Gridless builds and operates farms bitcoin mining in Africa precisely where there is renewable energy production. Thus, the company locates its farms near water sources where hydroelectric installations provide electricity. The company then becomes the main operator of the network, which helps to finance and make profitable the electricity supplier, who can therefore reduce its operating costs. Ultimately, it is the village that benefits from a reduction in electricity bills, which allows, in a virtuous circle, to be able to use it more.
Remote villages do not have businesses or significant demands to optimally use the electricity produced. This results in an electricity cost that is too high to bear for families living mainly from agriculture. As the distribution of energy in these villages is not profitable, it ends up being unexploited and inevitably wasted.
Bitcoin mining could accelerate the electrification of Africa
According to United Nations data, “West Africa has one of the lowest rates of access to electricity in the world; only about 42% of the total population and 8% of rural residents have access to electricity”. The problem of access to electricity is strategic for these regions. The demand for financially accessible and clean energy is becoming ever more intense but the supply is not keeping up.
The strategy recommended by World Bank consists of installing decentralized renewable energy systems, which are not dependent on the national electricity network to the extent that “distributed systems are easy to install, reliable and do not require any heavy investment, unlike the construction of large power plants” .
By operating “off-grid” electrical systems (which are not connected to the main grid), Gridless mining farms ensure that energy is primarily used for the needs of the village and only consumes the excess energy that would otherwise be wasted.
Bitcoin mining, ever greener and ever more decentralized
According to the latest study published by the “Bitcoin Mining Consult (BMC)”, the acceleration of the global hashrate using renewable energies is a trend that is increasing for different reasons, whether ecological or economic. Bitcoin miners are indeed seeking to optimize costs and are then turning to renewable energy which is cheaper.
Likewise, if today bitcoin mining farms are mainly found in North America, Europe and Asia, Africa is gradually starting to make a place for itself in this industry. The economic benefits for the continent would be substantial and many Bitcoin supporters are urging their governments to develop this activity, as evidenced by the initiative “Mano” in Ethiopia, For example. Other countries, such asAlgeria has the cheapest electricity cost in the world, which would also be a tremendous economic opportunity for the country and for bitcoin miners. Indeed, the Bitcoin mining can reduce the environmental impact of oil companies.
Mining across the world is becoming more diverse, which is also beneficial in terms of security for the Bitcoin network.
The Grilles company is not the only one to have set up in Africa and we can cite the company BBGS Mining, specializing in bitcoin mining using green energy. Installing a mining farm in the Virunga natural park, in the Democratic Republic of Congo, BBGS helps generate income and thereby contribute to the conservation of the richest biodiversity in Africa.
sources:
- https://www.un.org/fr/chronicle/article/developper-les-secteurs-de-lenergie-renouvelable-et-les-technologies-en-afrique-de-louest
- https://www.banquemondiale.org/fr/news/press-release/2022/11/09/world-bank-group-announces-major-initiative-to-electrify-sub-saharan-africa-with-distributed-renewable-energy
- https://www.technologyreview.com/2023/01/13/1066820/cryptocurrency-bitcoin-mining-congo-virunga-national-park/
- https://hydrobox.africa
[…] Here’s how a small bitcoin mining farm is improving the economy of African villages […]
[…] Here’s how a small bitcoin mining farm is improving the economy of African villages […]
[…] ecological solutions are being implemented today such as the use of a hydraulic power plant in isolated villages in Africa, the exploitation of green electricity available in surplus (BBGS) or even […]