Ethiopia Emerges as Top Destination for Chinese Bitcoin Miners
Ethiopia Emerges as Top Destination for Chinese Bitcoin Miners
In a surprising turn of events, Ethiopia has become a hotspot for Chinese Bitcoin miners seeking affordable electricity and favorable regulations. The East African country’s abundant hydroenergy resources and low electricity costs have made it an attractive destination for miners looking to relocate after being banned in China.
Chinese Bitcoin miners, who were forced to shut down their operations in China due to environmental concerns, have found a new home in Ethiopia. With electricity costs as low as 3.14 US cents per kilowatt-hour, Ethiopia offers competitive operating costs for miners. Additionally, the country’s ideal climate provides optimal conditions for mining equipment.
Since last year, Chinese miners have been flocking to Ethiopia with cargo containers filled with mining equipment. They have set up their operations near the Ethiopian Renaissance Dam, Africa’s largest hydropower project, to take advantage of the country’s renewable energy sources.
Despite Ethiopia’s ban on crypto trading, the country is set to allow Bitcoin mining by 2022. This decision has been influenced by the growing ties between Ethiopia and China, with Chinese companies contributing to the construction of the Ethiopian Renaissance Dam. The miners intend to source their electricity from this $4.8 billion project.
The influx of Chinese Bitcoin miners to Ethiopia not only benefits the miners but also strengthens the bilateral relations between the two countries. Ethiopia’s efforts to attract foreign investment align with China’s broader strategy in Africa, fostering mutually beneficial relations.
However, Ethiopian officials are approaching this development cautiously, considering the controversy surrounding Bitcoin mining and its potential social impacts. They are mindful of striking a balance between economic gains and the consequences of hosting BTC miners.
As Ethiopia emerges as a key player in the Bitcoin mining industry, it will be interesting to see how this partnership with Chinese miners unfolds and the impact it has on both countries. Stay tuned for more updates on this evolving story.
