Ethiopia's Surplus Electricity and Bitcoin Mining
Ethiopia is emerging as Africa's most promising bitcoin mining hub, poised to claim a significant share of the global hashrate as the hum of miners reverberates across the globe. Recent attention from a Bloomberg article and the announcement of a bitcoin mining investment by the Ethiopian Government signals a newfound global spotlight on the Ethiopian bitcoin mining sector. The potential of Ethiopia as a bitcoin mining hub resides in the promise of a mutually beneficial relationship between the nation and the industry. In this article, we delve into the transformative power of bitcoin mining to uplift Ethiopian society, unveiling five compelling avenues for prosperity in this East African gem.
Ethiopia's Abundant Hydropower Resources
Bitcoin mining allows Ethiopia to transform excess electricity into a valuable commodity, fostering economic growth while maximizing the utilization of its abundant hydropower reserves. Ethiopia's allure for bitcoin miners is undeniably anchored in its abundant hydropower resources. Nestled within the country’s mountainous terrain lies the source of the Blue Nile, accounting for a staggering 85% of the Nile's water. This abundant water wealth translates into the immense potential for hydropower generation, making Ethiopia a prime destination for electricity-intensive industries like bitcoin mining.
Ethiopia's Electricity Generation Potential
With the potential to harness an estimated 60 GW of hydropower, geothermal, wind, and solar, Ethiopia stands as a powerhouse that could theoretically become capable of generating more than three times the electricity consumed by the entire bitcoin mining network. Presently, the nation has tapped into a fraction of this potential, having an electricity generation capacity of 5.3 GW. Assuming a capacity factor of 40%, Ethiopia's current electricity generation capacity translates to a potential of 18.6 terawatt-hours (TWh) per year under normal rainfall conditions.
Ethiopia's Path to Economic Growth through Bitcoin Mining
As if Ethiopia's electricity surplus wasn't already substantial, the nation is on the brink of nearly doubling its generation capacity with the commissioning of The Grand Ethiopian Renaissance Dam. This awe-inspiring project will claim the title of Africa's largest hydropower plant, boasting an impressive nameplate capacity of 6.5 GW. With an anticipated capacity factor of 29%, sustained by the continuous influx of water to the dam, the power plant is projected to yield approximately 16.5 terawatt-hours (TWh) of electricity annually.
Bitcoin Mining and Ethiopia's Economic Landscape
The forthcoming Grand Ethiopian Renaissance Dam's anticipated 16.5 TWh of electricity production will propel Ethiopia's total potential generation to a staggering 35.1 TWh annually under typical rainfall conditions. With current consumption at 14.7 TWh, the surplus electricity generation will amount to an impressive 20.4 TWh, corresponding to a percentage electricity surplus of 58%. Ethiopia is one of the world's fastest-growing economies and is set to see a surge in electricity demand, necessitating the expansion of its hydropower infrastructure.
Ethiopia's Bitcoin Mining Export Potential
Ethiopia grapples with a daunting challenge: a staggering trade deficit. Bitcoin mining offers a revolutionary solution that transcends geographical constraints by allowing electricity to be converted directly into digital currency. By embracing Bitcoin mining, Ethiopia diversifies its export income and reduces reliance on neighboring countries for electricity sales. With the ability to export electricity through the Internet, the nation gains a stronger negotiating position and can demand higher prices for its exported power.
Bitcoin Mining and Job Creation in Ethiopia
Introducing the bitcoin mining industry could potentially provide avenues for accessing tech jobs, not limited to mining facilities but also encompassing the broader bitcoin economy poised to develop alongside the foundational growth of the bitcoin mining industry. Bitcoin mining will bring a significant amount of jobs to Ethiopians across many talents and skills.
Ethiopia's Bitcoin Treasury and Economic Development
The Ethiopian Investment Holdings (EIH), the country's sovereign wealth fund, has been rumored to partner with a Chinese bitcoin and data mining group. Given the natural series of events that occur with bitcoin miners, the accumulation of bitcoin may be a way for Ethiopia’s treasury to maintain a balance of BTC on behalf of its country. This could be used to prove creditworthiness and strengthen the national currency.
As we dive into the future, it may also be important to note the need for humility. We are at the center of a very serious and interesting moment in our history. Let’s move with purpose, passion, and dignity toward a future that values math and physics more than fiat and violence. That is our hope for ourselves and that’s the energy with which we will operate in Ethiopia.
Frequently Asked Questions
What is a Precious Metal IRA, and how can you get one?
An IRA with precious metals allows you to diversify retirement savings into gold and silver, palladium, rhodiums, iridiums, osmium, or other rare metals. These precious metals are extremely rare and valuable. These are excellent investments that will protect your wealth from inflation and economic instability.
Precious metals often refer to themselves as “bullion.” Bullion refers to the actual physical metal itself.
Bullion can be bought via various channels, such as online retailers, large coin dealers and grocery stores.
A precious metal IRA allows you to invest directly in bullion, rather than buying stock shares. You'll get dividends each year.
Precious Metal IRAs don’t require paperwork nor have annual fees. Instead, you pay a small percentage tax on the gains. Plus, you get free access to your funds whenever you want.
How much of your portfolio should you hold in precious metals
This question can only be answered if we first know what precious metals are. Precious metals are those elements that have an extremely high value relative to other commodities. They are therefore very attractive for investment and trading. Gold is currently the most widely traded precious metal.
There are many other precious metals, such as silver and platinum. The price of gold tends to fluctuate but generally stays at a reasonably stable level during periods of economic turmoil. It is not affected by inflation or deflation.
As a general rule, the prices for all precious metals tend to increase with the overall market. However, they may not always move in synchrony with each other. The price of gold tends to rise when the economy is not doing well, but the prices of the other precious metals tends downwards. This is because investors expect lower rates of interest, which makes bonds less attractive investments.
However, when an economy is strong, the reverse effect occurs. Investors want safe assets such Treasury Bonds and are less inclined to demand precious metals. They become less expensive and have a lower value because they are limited.
To maximize your profits when investing in precious metals, diversify across different precious metals. It is also a good idea to diversify your investments in precious metals, as prices tend to fluctuate.
What Does Gold Do as an Investment Option?
The price of gold fluctuates based on supply and demand. It is also affected negatively by interest rates.
Gold prices are volatile due to their limited supply. You must also store physical gold somewhere to avoid the risk of it becoming stale.
Statistics
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
External Links
bbb.org
forbes.com
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
finance.yahoo.com
irs.gov
How To
The best place online to buy silver and gold
First, understand the basics of gold. It is a precious metal that is very similar to platinum. It's rare and often used to make money due its resistance and durability to corrosion. It is very difficult to use and most people prefer to purchase jewelry made of it over actual bars of Gold.
Today, there are two types available in gold coins: one is legal tender and the other is bullion. Legal tender coins are those that are intended for circulation in a country. They typically have denominations of $1, $5 or $10.
Bullion coins are only minted to be used for investment purposes. Their value increases over time because of inflation.
They cannot be used in currency exchanges. For example, a person who buys $100 worth or gold gets 100 grams. This gold has a $100 price. Each dollar spent earns the buyer 1 gram gold.
Next, you need to find out where to buy gold. If you want to purchase gold directly from a dealer, then a few options are available. First, go to your local coin shop. You can also try going through a reputable website like eBay. You can also look into buying gold online from private sellers.
Private sellers are individuals that offer gold at wholesale or retail prices. Private sellers will charge you a 10% to 15% commission for every transaction. A private seller will usually return less money than a coin shop and eBay. However, this option is often a great choice when investing in gold since it gives you more control over the item's price.
The other option is to purchase physical gold. While physical gold is easier than paper certificates to store, you still need to make sure it is safe. To ensure that your physical gold remains safe, you need to secure it in an impenetrable container such as a vault or safety deposit box.
When buying gold on your own, you can visit a bank or a pawnshop. A bank can give you a loan up to the amount you intend to invest in Gold. The pawnshop is a small business that allows customers to borrow money to buy items. Banks charge higher interest rates than those offered by pawn shops.
The final option is to ask someone to buy your gold! Selling gold is easy too. A company such as GoldMoney.com can help you set up a simple bank account and get paid immediately.
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By: Jaran Mellerud
Title: Ethiopia's Potential as a Bitcoin Mining Hub: A Transformative Opportunity
Sourced From: bitcoinmagazine.com/markets/5-ways-bitcoin-mining-benefits-ethiopia
Published Date: Wed, 06 Mar 2024 17:30:00 GMT
