Ethiopia now accounting for a solid 2.5% of the global hashrate. This growth is largely thanks to big investments from Chinese firms like BitFuFu and BIT Mining, eager to tap into Ethiopia’s growing mining sector.
A rising star in Bitcoin mining
Local miner Kal Kassa announced that Ethiopian miners have claimed 2.5% of the global hashrate, and if current trends continue, Ethiopian Electric Power predicts this could more than double within a year.
Ethan Vera, co-founder of Luxor Mining shared that local operations are already consuming 600 MW of power, and that number could grow to 1 gigawatt by year-end, potentially representing up to 7% of the global Bitcoin network’s hashrate.
With this contribution, Ethiopia is positioning itself among the top five Bitcoin mining nations, joining established players like the United States and China.
China’s ban
Ethiopia’s rise as a mining hub comes on the heels of China’s 2021 ban on Bitcoin mining, which forced many miners to seek new homes.
Companies like BitFuFu have set up large operations in Ethiopia, while BIT Mining recently invested $14.3 million to acquire a 51 MW Bitcoin mine along with nearly 18,000 mining rigs.
But what makes Ethiopia so appealing? It boasts an abundance of cheap and clean hydropower and renewable energy resources.
The government is actively promoting the country as a Bitcoin mining destination, with EEP generating over $55 million in revenue from agreements with 25 Bitcoin mining companies over the past ten months.
Economic implications
Boyd Cohen, a Bitcoin mining advocate, points out that this trend could have wider economic implications, and he believes countries that adopt Bitcoin early on might emerge as new economic leaders in the coming decades, leading to a high level redistribution of wealth.
https://twitter.com/boydcohen/status/1864338762169471125
As Ethiopia continues to grow its presence in the Bitcoin mining industry, it’s clear that this African nation isn’t just sitting on the sidelines.
With significant investments pouring in and a supportive government backing the industry, we can expect Ethiopia to become an even more formidable player in the global crypto market for sure.
