#Ethiopia: From Shadows to Spotlight: Why Ethiopia became latest scene for cryptocurrency rush
Ethiopia, a nation often overlooked in the tech world, is rapidly gaining global attention as a major player in
#Cryptocurrency mining. With abundant renewable energy resources and government eagerness for foreign investment, the country is becoming a magnet for
#Bitcoin miners worldwide. Recent reports highlight the influx of miners, including 21 from
#China, attracted by Ethiopia's low electricity costs and hydroelectric potential. BitCluster, a
#Russian company, also plans a $250 million Bitcoin mining facility near
#Addis_Abeba.
Ethiopia's state-owned Ethiopian Investment Holdings has partnered with Data Center Service to develop a $250 million infrastructure project supporting data mining and AI training. The country has already garnered over $2 million in foreign currency payments from Bitcoin mining firms, with more lining up to collaborate with Ethiopian Electric Power.
Bitcoin mining, the process of validating transactions, is energy-intensive, requiring specialized hardware and significant electricity. Ethiopia's appeal lies in its abundant renewable energy, which reduces operating costs for miners. The country's surplus energy could potentially generate significant revenue, surpassing earnings from key exports like coffee. Additionally, its terrain and climate mitigate cooling expenses for mining equipment. The impending Bitcoin halving event in April 2024 is expected to reshape global mining operations.
While the economic incentives are substantial, concerns linger regarding environmental impact, and infrastructure deficiencies. Ethiopia's legal framework for cryptocurrency regulation also remains underdeveloped, presenting obstacles to the sector's growth.
https://addisstandard.com/from-shadows-to-spotlight-why-ethiopia-became-latest-scene-for-cryptocurrency-rush/
