How Bitcoin mining is shaping Africa's energy transition
In Kenya, they show that Bitcoin isn't just a "climate polluter."
In Kenya they show that Bitcoin isn't just a "climate polluter." Here, mining is even the driving force behind the expansion of renewable energy sources. Bitcoin has been getting more criticism lately for its energy efficiency. A recent study from the University of New Mexico even gave the cryptocurrency a 'miserable' eco-certification. According to the study, Bitcoin is roughly as harmful to the climate as beef, gasoline, or natural gas.
Bitcoiners are now pointing out the flaws of this "climate killer" narrative. The fact that bitcoin mining can even be used to reduce climate damage is often ignored by critics. A recent example from Kenya shows how Bitcoin mining captures "stranded" energy and thus lowers costs for villagers.
Efficient Bitcoin mining
The Kenya-based mining venture "View post on X" is working to use wasted energy sources for Bitcoin mining. In some villages, micro-hydropower plants generate electricity. These hydro plants are currently producing far more electricity than is needed for now, which is not conducive to efficiency.
Gridless uses this lost energy and captures it with Bitcoin miners connected to the plant. Operating costs are offset by the crypto revenues from mining. Allegedly, villagers' energy costs have been reduced by 90%. This is because renewable energy sources often remain underutilized in African countries. The initial demand is significantly lower than the production of the respective resource.
Bitcoin in Africa
Bitcoin mining not only seems to solve this problem, but also drives further expansion of such renewable energy sources in remote areas. If the costs of surplus energy can be lowered, more companies will be willing to invest.
Another side effect of this approach is the decentralization of Bitcoin mining. If several African countries adopt this, the continent could become a major player in the mining sector. The global spread of Bitcoin mining would be enhanced.
