Chinese miners have not been allowed to mine Bitcoin in their own country for some time. Since crypto mining was banned in China, Chinese miners have been looking for locations where they can continue their mining activities. On this search they end up in a country that initially seems surprising.
Bitcoin mining center in Africa
It is Ethiopia that is suddenly popular with miners. The African country appears to be the ideal place for many Chinese miners to set up their Bitcoin mining operations. This is mainly due to the low energy costs. It has one of the lowest energy costs in the world and the Ethiopian government also seems to welcome the mining industry.
While the Bitcoin mining sector is often stigmatized and accused of environmental pollution around the world, Ethiopia offers a unique opportunity for miners. The country produces a large amount of sustainable hydropower and is therefore very interesting for miners looking for sustainable options.
It is estimated that Ethiopia is now one of the top destinations for Bitcoin mining equipment. This equipment largely comes from Chinese miners.
After the Chinese ban on crypto mining in 2021, many people switched to Bitcoin Hashpower, the mining computer power, to the United States. Texas, in particular, is a state known for its large number of Bitcoin miners. For Chinese miners, Ethiopia offers a fresh start without the competition that miners face in a state like Texas.
Win-win situation?
The climate in Ethiopia is also very favorable for miners. The stable and moderate temperature is almost optimal for the mining rigs. Although crypto mining is banned in Ethiopia, an exception was made for Bitcoin mining in 2022. This is mainly due to the growing relations between China and the African country.
At first glance, the growth of the Bitcoin mining sector seems to be a win-win situation. But there is also criticism. Chinese miners use a lot of electricity, while half of Ethiopia’s residents have no access to electricity. The situation is certainly not without complications.