Ethiopia is rapidly positioning itself as a major contributor to the global Bitcoin mining landscape, accounting for 2.5% of the global hash rate.
Growth in Bitcoin Mining Capacity
On December 4, Kal Kassa, a prominent local Bitcoin miner, revealed:
“Bitcoin miners in Ethiopia now command 2.5% of the global hash rate. If trends continue, according to Ethiopian Electric Power (EEP), this will more than double within one year.”
Ethan Vera, co-founder and COO of Luxor Mining, echoed similar sentiments. He noted that Ethiopian mining operations are currently consuming 600 megawatts (MW) of power. This consumption is expected to reach 1 gigawatt (GW) by the end of the year, potentially boosting the nation’s share to 7% of the global Bitcoin network’s hash rate.
With a 2.5% contribution, Ethiopia ranks among the top five Bitcoin mining countries, joining leaders such as the United States, China, and the Czech Republic.
Relocation of Chinese Miners to Ethiopia
Ethiopia’s rise as a Bitcoin mining hub aligns with the migration of Chinese miners following China’s 2021 Bitcoin mining ban. Companies like BitFuFu, backed by Bitmain, have established substantial operations in Ethiopia, while Bitmain itself has supported infrastructure growth in the region. Similarly, BIT Mining has expanded into the Ethiopian market, investing $14.3 million to acquire a 51 MW Bitcoin mine and nearly 18,000 mining rigs.
Ethiopia’s Advantages in Bitcoin Mining
Ethiopia’s appeal lies in its vast hydropower resources and surplus renewable energy. Over the past 10 months, the state-owned EEP has generated $55 million in revenue through partnerships with 25 Bitcoin mining firms. This highlights the government’s proactive approach to establishing the nation as a global Bitcoin mining hub.
Broader Economic Implications
Boyd Cohen, a Bitcoin mining advocate, emphasized the potential economic transformation driven by Bitcoin adoption. He suggested that nations adopting Bitcoin early could emerge as economic leaders in the coming decades, potentially redistributing global wealth.
Ethiopia’s significant strides in Bitcoin mining position it as a contender in reshaping the cryptocurrency mining industry
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