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0 sats \ 2 replies \ @KenyaCoin 5 Oct 2022 \ parent \ on: Can Bitcoin Mining Electrify Africa? - The Looking Glass Education bitcoin
I created a separate post for that newsletter issue:
21st Century Villages
#77472
https://africansignals.substack.com/p/21st-century-villages
This is where the details, such as the source of the power, becomes crucial in weighing whether or not bitcoin mining would be able to contribute positively. If it is solar-powered, does the equipment get powered down when sunset approaches? Even if there is battery storage, that likely won't mean enough power is stored to support running bitcoin mining through the entire night until the sunlight in the morning is enough to solely support the load once again. If a bitcoin miner is running just 40% of the day, that's wasted opportunity as the rig is depreciating at a good clip (as bitcoin mining rigs do, historically, quickly lose value due to improvements in hashrate capacity and power efficiency with new models). Even the author's run-of-the-river microgrid example would likely be seasonal, or periods where it cannot produce sufficiently due to drought.
That being said, there is much to gain from this concept. If the bitcoin exchange rate rises faster than the bitcoin mining difficulty, these rigs literally print money, and not just are these able to pay for the power consumed but they can generate a very nice outsized return on investment. But even if there's no price spike, ... there are knock-on effects possible as well. These rigs produce heat -- heat which can be useful ... such as in agriculture, such as heating a greenhouse, or drying grains, perhaps. These rigs require some amount of technical skills to install and operate, and such a project would help young technicians further develop their skills in new ways. And finally, this bitcoin mining as "buyer of last resort" option may, in some instances, be just the component needed that tips the scale in favor of going forward with a microgrid project.
You hit the nail on the head there, and yes the details are important in assessing overall long-term feasibility and sustainability, However i believe this is a very viable opportunity that is staring Africa in the face, especially when you consider the limitations that energy poverty impose on economic growth. Plus the grid operators don't necessarily need to buy all the rigs upfront, they could entice a bitcoin miner to come and purchase power at the source, once consumers are connected the miner can turn off his machines when required to balance the power consumption between consumers and the miner. in addition, the point you brought up about heat energy being recycled for agricultural use is another benefit, and this is exactly what i am talking about that this is definitely a route that if planned and executed well, there is little to lose and much to gain, especially when new projects in rural areas are on the cards where immediate industrialization may not be likely, but a vibrant agricultural community already exists.
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Where does discussion on this topic occur?
I'm aware of this Telegram group,
Sustainable bitcoin mining
https://t.me/renewablebitcoin
but I'm looking to become more informed more in-general for micro-grids.
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