Mining headlines usually refer to North America and Asia, with occasional mentions of Latin America. But another region of the world is showing some uncanny signs of continued interest in the mining sector.
This article explores some data that shows interest from African countries in mining and some companies known to be mining in the region, all in a bullish context in the context of Africa’s widely reported general interest in bitcoin. As a laudable precursor to the growing mining industry.
Data on African bitcoin mining
Google Trends is the most frequently cited data set to reflect interest, changes in sentiment and various market conditions in bitcoin and other cryptocurrency circles. The reliability and accuracy of this data is never perfect, but it often reflects reality.
So, who is searching the most about bitcoin mining?
According to Google Trends at the time of writing the answer is several African countries. This data was also observed by the mining research team at Compass Mining about a year ago, and it is still true today.
Here are the top-10 countries ranked based on regional search interest in bitcoin mining for the past year:
- Nigeria
- Zimbabwe
- cameroon
- Ethiopia
- Mauritius
- Ghana
- Albania
- South Africa
- myanmar
- Kenya
But does this data matter? Search data from the US, for example, provides a bit more color on Google Trends data that may reflect some of the realities of the real-world mining industry. Google Trends shows Wyoming as the top-ranked location for bitcoin mining queries, after narrowing down searches to the US. And, in fact, the state is one of the largest and fastest growing centers for mining in the US, suggesting that Google Trends data reflects legitimate industry action.
African bitcoin mining status
Despite interest in the topic, most indicate African countries collectively represent a small percentage of bitcoin’s total hash rate. For example, data collected by the Cambridge Center for Alternative Finance claims that no African country contributes more than 0.14% to the hash rate of bitcoin. This amount apparently comes from Egypt, which is the region’s biggest hash rate contributor. This data set is extremely problematic, but in general the mining activity across the region is relatively small.
Mining is still happening in Africa, and it is increasing. BigBlock DC is a prime example of a mining company operating in this area. it is shared photos And Video Feature buildout on Twitter. Additionally, there are reports of off-grid solar mining operations in Zimbabwe. And a Ghanaian IT company claims to have activated the region’s first mining operation in 2016.
Africa’s Potential to Power Bitcoin Mining
Few things excite bitcoin miners more than cheap, abundant energy. Considering Africa’s potential future as a regional mining hub, its abundant energy resources are important. Here is an overview.
African countries have the greatest untapped potential for large-scale hydropower development in the world. It is already the region’s main source of “clean” energy, and planned development means there is no sign of losing momentum.
Africa has more potential solar resources than any other continent, although solar energy development is not widespread or significant. One study found that a solar power farm covering 0.3% of North Africa could supply all the energy needed to power the European Union.
Flare gas is also a strong contender as a power source for African mining activity. Angola, for example, has already looked for ways to monetize its gas flammable activity, and is the second largest crude oil producer in the region.
Nuclear power is one of the rarest forms of power in Africa. Of the 54 countries in the region, only South Africa has active nuclear facilities. South Africa currently generates 10 billion kilowatt hours (kWh) of baseload electricity at the Koeberg Nuclear Power Station in Cape Town. Bitcoin miners and the nuclear power industry are building an increasingly strong relationship, and the trend is expected to extend to Africa to catalyze more nuclear development.
beyond bitcoin mining
Mining sector aside, Africa’s leading role in rising global bitcoin usage is no secret. A steady stream of headlines, especially over the past few years, has highlighted the increased interest in the sector for bitcoin from investors, developers, traders, and other users. For example:
- Paxful CEO Ray Youssef says Africa is “leading” cryptocurrency adoption
- Square CEO Jack Dorsey says Africa “will define the future“Bitcoin”
- Programs like Kala are recruiting and training bitcoin developers.
- Even the United Nations has taken note of the use of bitcoin and crypto in Africa.
- The Central African Republic was the second country to adopt bitcoin as legal tender.
- According to a brief by the United Nations, Kenya has the highest level of bitcoin ownership per capita
Widespread interest in buying and using bitcoin usually precedes even stronger interest in bitcoin mining. China, the US, and parts of Latin America, for example, have historically been geographic leaders in bitcoin investment and use, and it is no coincidence that these regions are also leaders in retail and industrial-scale mining activities. While this doesn’t necessarily explain all the apparent interest in mining from various African countries, those who want bitcoin will eventually want to learn how to make it.
Mining: Natural Steps in Africa’s Bitcoin Journey
At the risk of repeating the obvious, much of this article is speculative analysis based on few statistical and anecdotal signs of mining development across Africa. It is difficult to know for certain whether parts of that region will become the next Texas or Kazakhstan for mining.
But it is certain that the current mining activity there is not slowing down and a constant level of general curiosity about mining is seen in Google search queries. And, of course, the sector’s general interest in understanding, using, and building with bitcoin has been widely reported.
Given Africa’s enthusiasm over bitcoin and its abundant, diverse energy resources, the mining sector is a natural step forward in the bitcoin narrative arc. Africa’s bitcoin future is undoubtedly a bright one, and mining could play a major role in it.
This is a guest post by Jack Voel. The opinions expressed are solely their own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.