Cryptocurrency mining is a big deal in most developed nations, countries like Canada, the United States of America and even the Republic of China have their fair share of miners, but much cannot be said about crypto mining on the African continent. While this assertion might be correct, the Republic of South Africa is leaving nothing to chance, in its quest to becoming the cryptocurrency mining hub of the African continent.
Africa’s Cryptocurrency Mining Hub
The immense effort of the South-African government and its citizens in turning the country into the crypto mining hub of Africa caught global attention early this year when CNN discussed the topic on its show titled Marketplace Africa.
The cable network interviewed Taqi Abughazaleh, a crypto miner, who runs a mining rig in Johannesburg, one of the Capital city of the country. Taqi explained that his mining rig consists of a cooling system, electricity connection, and a miner. Although, he appreciates the dangers in crypto mining, but explains that he is willing to bear the risk.
‘’We are producing about two bitcoin every month and about twelve Ethereum per month. (The amount of money we make) depends on the price, so let us say if the price went up (and we made) 40,000 dollars per month, we have to take off 5000 dollars for electricity so that the rest would be 35,000 dollars per month’’ he said.
Cryptocurrency mining in South-Africa is not only inviting individuals but have also attracted companies such as Affinity Mining.
Alternative to the Unstable African Fiat Currency
Market analysts are of the opinion that the introduction of Cryptocurrency into the African financial sector will help the economy of most African countries, especially countries with a very weak currency and a volatile economy.
Farzam Ehsanni, a blockchain expert at Rand Merchant Bank in South-Africa is of the opinion that Cryptocurrency would likely contribute to the development of most African banks in the future.
“In Africa, there are many types of currencies, and they are not the most stable; the Nigerian Naira was more volatile than Bitcoin last year…In the future, Cryptocurrency could play an alternative to some of the regimes that aren’t doing well,” she stated.
The achievement of South-Africa in crypto mining might just encourage other African countries to openly embrace cryptocurrency and blockchain and create policies that would encourage both start-up and established firms in their countries.