This is how mining promotes renewable energies in Africa

Bitcoin recently had to put up with increasing criticism regarding its energy efficiency. A recent study by the University of New Mexico even gave the cryptocurrency a miserable eco-certificate. Bitcoin is therefore about as harmful to the climate as beef, petrol or natural gas, it is said.

Bitcoiners are now pointing out the mistakes in these “climate killer” narratives. And critics like to disregard the fact that bitcoin mining can even be used to reduce climate damage.

A recent example from Kenya shows how bitcoin mining is intercepting “stranded” energy, reducing costs for villagers there and contributing to the development of renewable energy.

Bitcoin mining for more efficiency

Kenya-based mining company Gridless makes it its mission to use wasted energy resources to mine Bitcoin. For example, in some villages in Kenya, where mini hydroelectric power plants generate electricity. However, these waterworks are currently producing significantly more electricity than initially required, which is not conducive to the efficiency of generation.

Gridless uses this otherwise lost energy and intercepts it with bitcoin miners connected to the plant. Cryptocurrency mined from it is sold to reduce operational costs.

Allegedly, the energy costs of the villagers can be reduced by up to 90 percent. This is because Africa’s renewable energy sources are often untapped due to the associated costs. Because the initial demand of individual municipalities or cities is usually well below the output of the respective source.

Bitcoin mining is becoming more decentralized

Bitcoin mining apparently not only solves this problem, but also promotes the further expansion of such renewable energy sources in remote regions. If the cost of excess energy can be reduced, more companies are willing to invest.

Another side effect of this approach is the decentralization of Bitcoin mining. With an Africa-wide adaptation, the continent could become an important carrier of the mining sector. Global representation of bitcoin mining would be strengthened.

Criticism of Bitcoin because of the environmental impact of mining often seems privileged and short-sighted in the face of such examples. In developed countries, where there is a high demand for scarce renewable energy, mining may seem useless to some. In other regions of the world, on the other hand, it could drive the expansion of the renewable energy sector and serve large parts of the local population.

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