Deep in the heart of Kenya’s Hell’s Gate National Park, amidst extinct volcanoes and lush landscapes, a peculiar operation is underway. A compact, 500-kilowatt container sits unassumingly, transforming the untapped power of a geothermal site into a digital treasure: bitcoin.
Decentralising Power and Wealth
This mining operation is spearheaded by Gridless, a startup backed by Block, the brainchild of Twitter founder Jack Dorsey. Driven by a mission to secure and decentralise the bitcoin network, Gridless combines renewable energy sources with the power of blockchain technology.
“Bitcoin mining doesn’t just yield digital currency,” explains Gridless CEO Erik Hersman. “It secures the network and distributes its control globally, preventing any single entity from wielding undue influence.”
Decentralisation is a pillar of bitcoin’s appeal, ensuring its resilience and independence from government or corporate interests.
The Energy-Intensive Enigma
Bitcoin’s creation hinges on proof-of-work, a computationally demanding process involving vast energy consumption. Miners worldwide run high-powered computers to verify transactions and generate new coins, fueling an insatiable appetite for electricity.
Various operations, including large publicly traded entities and countless individual miners, compete to process transactions and earn bitcoin rewards. This global pursuit drives the geographical distribution of mining operations, as miners seek out the most cost-efficient energy sources.
Africa: A Haven for Cryptocurrency Miners
In recent years, Africa has emerged as a hotspot for crypto mining. Its abundant renewable energy resources, such as solar, hydro, and geothermal, coupled with lower energy costs, make it an attractive destination for miners.
Bitfarms and Marathon Digital, established players in the mining industry, have expanded into Latin America, the Middle East, and Africa, seeking cleaner and more cost-effective energy solutions.
Bridging Power Gaps, Empowering Communities
Gridless’s operations in Africa extend beyond bitcoin mining. By partnering with renewable energy developers, they tap into stranded power resources and make them accessible to communities lacking reliable electricity.
Hydro plants have reduced electricity prices, while battery charging stations for electric motorcycles and public WiFi points empower local residents. In Zambia, Malawi, and Kenya, Gridless has already electrified thousands of homes.
Sustainable Mining, Empowering the Future
Despite its energy demands, bitcoin mining can play a transformative role in unlocking Africa’s vast renewable energy potential. Miners serve as reliable buyers of excess power, incentivising production and expanding access to clean energy.
“It’s not glamorous,” says Hersman, “but these mining containers are securing the bitcoin network while driving economic development in Africa.”
The bitcoin boom in Africa is a testament to the convergence of technology, energy, and global connectivity. As miners leverage Africa’s renewable resources, they not only secure the cryptocurrency’s future but also contribute to sustainable infrastructure and equitable economic progress.
Data sourced from: cnbc.com
