Crypto Mining In Africa

Africa is experiencing rapid growth in cryptocurrency transactions. A young tech-savvy community can reap the benefits of virtual currency in a continent where mobile cash is well-used.

Interest in cryptocurrency, a digital currency, is on the rise in Africa. It is a disruptive idea, some would say.

Because cryptocurrency is internet-based it can be used in any region. Its transactions are stored in the blockchain database, which is a network connected computers that records transactions in real-time.

Cryptocurrency works in a similar way to mobile money. This makes it easier to access for Africans than for people living in western countries with inclusive economic growth and easy banking systems.

These words are filled with confidence. However, positivity is rarely seen beyond paper. Africa isn’t as big a crypto trading and mining hub as it appears to be.

Strict restrictions, high electricity rates, and the exorbitant cost of putting up a mining rig are just a few of the reasons why Africa’s mining industry is so fragmented.

According to a report, Africa makes up less than ten per cent of total bitcoin hashing power. There are 54 countries in Africa that have mining communities. These include South Africa, Egypt and Kenya. Each country has its own population that supports or opposes mining.

Why isn’t crypto mining flourishing in Africa?

One of the main contributing factors is the large amount of cash required to build a mining rig. A mining rig typically includes six to eight 1080TI graphics cards connected to a standard computer.

It costs less than $5,000 to set up this basic equipment. The majority of Africans cannot afford a basic crypto mining machine.

The cost of electricity is another problem that those who are able to acquire mining equipment must deal with.

Many energy companies in Africa are not reliable or sustainable. Blackouts can last for days, which is why mining is discouraged.

If you’re fortunate enough to be able to finance a mining rig and live in a country with efficient and cheap electricity, the next hurdle you’ll have to conquer is stringent government regulations. Nigeria and other countries have outright banned trade.

Due to the heat, crypto mining can be unfavorable for some African countries. Mining produces heat. In hot areas, mining equipment can overheat. Mining in hot regions is expensive because it requires large cooling expenditures.

Africa has the potential to become the world’s largest crypto mining region, but this will require a lot of legislation and investment.

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