Bitcoin mining can boost the economy of the poorest continent

Key facts:
  • African countries top Google searches for Bitcoin mining.

  • The African country with the highest Bitcoin hashrate only contributes 0.14% of the global hashrate.

Bitcoin mining is an activity that, in addition to strengthening the network created by Satoshi Nakamoto, has the potential to strengthen the economy of entire countries and their inhabitants at a particular level.

Africa, which according to UNHCR is the continent with the highest rate of poverty in the world, it could benefit greatly if it manages to exploit its potential to become a hub for Bitcoin mining.

A Bitcoin Magazine research shows that the interest of the African population in Bitcoin mining is high. Just take a look at Google search trends in that region to see for yourself. This premise leads one to think that there should be a lot of mining activity on this continent, but, unfortunately, that is not the reality.

Despite the high interest of the African in Bitcoin mining, his participation in the network is not of much weight. According to statistics from the Center for Alternative Finance of the University of Cambridge, The country with the most Bitcoin mining power on this continent is Libya, which contributes 0.14% of the global Bitcoin hashratefollowed by Egypt with 0.02%.

Africa’s Potential in Bitcoin Mining

Although many regions of the African continent lack the benefits of modern technology, different areas of society also have characteristics that give it tremendous potential to emerge from underdevelopment.

One of the biggest benefits Africa can offer Bitcoin miners is its wealth of natural resources for power generation. According to the International Hydroelectric Power Association (IHAfor its acronym in English), Africa has a huge amount of untapped resources in that area.

Thereto the potential of the territory and climate of the African continent to generate solar energy is added. According to studiesa solar power plant covering 0.3% of North Africa could generate enough electricity to meet the demand of the entire European Union.

Another aspect that works in favor of Bitcoin mining in Africa is the adoption of BTC in its population. The adoption of bitcoin as legal tender in the Central African Republic and the growth of bitcoin trading volume on the platform Paxful by the population of Nigeria are some of the facts that exemplify the spread of the Satoshi coin in the continent.

What could Bitcoin mining bring to Africa?

Bitcoin mining, both on a small and large scale, can bring great benefits to African countries and their inhabitants. As for home or small-scale mining, this it can become a supplement to a household’s income. Despite how expensive a Bitcoin miner can be, the fall that the prices of this equipment have been experiencing, coupled with relatively economical They favor small-scale mining.

Macro-scale mining, like mining on farms, is not something that a couple of people can take care of. From the construction and conditioning of the space where the miners will be, to its maintenance and supervision, they require a certain number of trained personnel. In other words, Bitcoin mining also creates jobs.

One more benefit that Bitcoin mining can bring to Africa is at the development level. On the one hand, in the area of ​​finance, as investment by foreign companies that could be interested in mining on African lands and the birth of local companies would be stimulated. Additionally, there are the taxes that this type of industrial activity can generate.

On the other hand, Bitcoin mining can drive advances in the technological infrastructure of the region where it is carried out. This is due to the fact that the demand for electricity and stable internet is high, which It can favor the improvement of the electrical network and the internet of the localities that have nearby mining companies.

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