In the heart of East Africa, a surprising powerhouse is rising in the world of cryptocurrency.
Addis Abeba —
These miners are aligning themselves with other cryptocurrency enterprises that are already leveraging Ethiopia's significant hydroelectric resources, as well as those intending to relocate their mining operations from various regions across the globe., Nuo Xu, the founder of the China Digital Mining Association, expressed his optimism, stating,"Ethiopia is poised to emerge as one of the most sought-after destinations for Chinese miners.
Ethiopia is poised to emerge as one of the most sought-after destinations for Chinese miners." Nuo Xu, the founder of the China Digital Mining AssociationWhat precisely is this digital currency that has garnered significant international interest and investment? The origins of this revolutionary technology can be traced back to the 1970s and the emergence of cryptography, the field of mathematics governing secure communications.
In stark contrast to fiat currencies, which derive value from the credibility of their issuing governments, Bitcoin's value stems from its scarcity, decentralized architecture, and widespread acceptance as both a store of value and a medium of exchange on a global scale. Kal continues,"However, instead of relying on a central authority, it accomplishes this through an extensive network of interconnected computers."
Ibsa G, a Bitcoin enthusiast, explains,"Miners aggregate pending Bitcoin transactions from across the network and consolidate them into blocks for validation through an intensive computational process known as Proof of Work." This mining process is exceedingly energy-intensive, necessitating miners to consume substantial quantities of cost-effective and reliable electricity to power their mining equipment continuously.
As a result of the ban, Bitcoin miners were compelled to either permanently cease their operations or relocate to jurisdictions more favorable to cryptocurrency activities. At the core of the exodus lies an immense appetite for cheap and abundant electricity to power the colossal computational demands of mining bitcoin and other cryptocurrencies.
"Every 10 minutes, mining operations that successfully validate and append new transaction blocks to Bitcoin's blockchain are rewarded with newly minted bitcoins," he explains."However, this reward is programmatically halved every four years through an event dubbed 'the halvening', ensuring scarcity."
According to the report, due to the effects of the Bitcoin halving, a considerable quantity of mining rigs from series like the S19, which presently form a substantial portion of the machinery utilized in the United States, are being sold to investors already present in Africa and considering investments in countries such as Ethiopia and Tanzania, along with South American nations like Paraguay.
Kal indicates that a considerable portion of these mining revenues would directly enhance the financial resources of Ethiopia's electric utility. Currently, there are over 295 million cryptocurrency users worldwide, with approximately 33 new cryptocurrencies being introduced each week. Ibsa acknowledges the environmental apprehensions surrounding the carbon footprint of mining activities and the intensive utilization of energy, potentially exacerbating pressures on the national grid.
"Many countries reversed their stances after realizing the missed economic opportunities and domestic discontent triggered by energy demands," he noted.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Ethiopia: U.S. to Support Ethiopia, Chad in Overcoming Sudanese Refugee CrisisThe U.S. Bureau of Population and Refugees announced that it will enhance cooperation with Ethiopia, Chad and other international organizations to alleviate the suffering of Sudanese refugees.
Read more »
Ethiopia: Pepfar Announces 111 Mln. USD Support to Ethiopia's Response to HIV/AidsU.S. President's Emergency Plan for AIDS Relief (PEPFAR) has announced a 111 million USD support to Ethiopia's response to end HIV/AIDS by 2030.
Read more »
Ethiopia: Driving Economic Growth - Rise of Industrial Parks' Development in EthiopiaEthiopia, a country located in the Horn of Africa, has been making significant strides in its economic development over the past decades. One of the key drivers of this growth has been the establishment and expansion of industrial parks across the country.
Read more »
Ethiopia: Indian Companies Invited to Seize Investment Opportunities in EthiopiaEthiopian Ambassador to India, Demeke Atnafu called on Indian companies to further invest in Ethiopia and seize the untapped business opportunities in the east African nation.
Read more »
Ethiopia: In Ethiopia, Three Young Women Advocate for a Community Free From Female Genital MutilationEntering adulthood can be a beautiful journey, but for those who have experienced female genital mutilation (FGM), it often carries layers of pain and trauma. FGM leaves a scar that goes beyond physical pain. It robs young girls of the opportunity to embrace womanhood on their own terms. The shame and trauma often lingers with them for a long time.
Read more »
Ethiopia: USAID Improves Food Systems in Ethiopia With Two New Agriculture Projects Valued At $86.5 MillionPress Release - On March 5th, USAID Economic Growth and Resilience Office Director Amber Lily Kenny and State Minister Dr. Meles Mekonin from the Ministry of Agriculture, launched a $77 million Feed the Future Ethiopia Transforming Agriculture, and a $9.5 million Feed the Future Ethiopia Seed Systems projects.
Read more »