Kusama (ksm) 
How Ethiopia Became a Leader in Bitcoin Mining
Ethiopia’s access to cheap, reliable, and renewable energy sources has allowed the country to generate around $1 billion in Bitcoin mining profits in 2024. This success is particularly notable in a region where only 35% of Ethiopians had bank accounts in 2023.
The Rise of Fintech in Africa
Africa is witnessing a surge in fintech unicorns, providing payment solutions to the highly unbanked population. Companies like TymeBank, Moniepoint, and Opay have created and maintained successful payment mobile apps and ground touchpoints, capitalizing on the gap left by traditional banking systems.
With 80% of Africans lacking bank cards, digital money solutions are filling the void, and cryptocurrency is playing a significant role in shaping the modern-day financial reality of the continent.
Ethiopia’s Success in Bitcoin Mining
Ethiopia entered the global Bitcoin mining top in 2023 and is expected to reach up to $5.4 billion in revenue by 2027. The country’s success in the sector is attributed to the Grand Ethiopian Renaissance Dam (GERD), a gravity dam constructed on the Blue Nile River.
The GERD is one of the 20 largest hydroelectric power plants in the world and the biggest one in Africa. It provides electricity to the entire country and produces enough for export to other nations.
Notably, only half of the Ethiopian population has access to electricity, leaving a significant portion of spare energy available for investment in mining.
Key Components of Ethiopia’s Success
According to Ethan Vera, COO of Luxor Mining, the key components of Ethiopia’s success in Bitcoin mining include:
- Cheap electricity
- Use of mid-generation mining devices that consume less power and cost less than newer machines
The main models used in Ethiopia are Bitmain’s S19J Pro and A1346 by Canaan.
A Blueprint for Sustainable Mining
Ethiopia’s success demonstrates that governments can use cryptocurrency to finance infrastructure development and lift local economies without compromising environmental sustainability.
The country’s approach to green mining involves easy access to clean energy, with profits reinvested in the dam’s development, representing a win-win scenario.
Africa’s Bitcoin Mining Future
Ethiopia’s success is paving the way for other African countries to capitalize on renewable energy sources to build Bitcoin mining operations.
Similar efforts across the continent could inject vitality into local economies, amplify the ongoing fintech revolution, and open new opportunities for African nations.
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