Where is mining cheapest in Africa?

[Chinwemd8n]

i've been thinking about how mining costs are shooting up everywhere and then there's Ethiopia jumping in with some of the cheapest electricity around ($0.054/kwh). It's pretty cool to imagine Africa shaking things up in crypto mining like this! I wonder if Ethiopia can really go toe-to-toe with big shots like China, the US and Kazakhstan. What do you think, can they pull it off?

 

[Emeka0t]

I did a quick calculatons based on your electricity rate. I chose the latest Bitcoin miner, s21 xp IMM, which gives 300TH/S and consumes 4050 W,

 

[Aminauc]

I didn't know the cost of electricity in Ethiopia was that cheap
Do you know if it is in the whole country?

When I was mining ETH in 2017-2018, I tried to do a project to mine in another country, but it's quite difficult
It usually has to be a medium-large project to compensate for travel, maintenance and hiring people to manage your project, it''s hard to spend a lot of money in a country you don't live and don't know exactly about the safety for example (not talking about Ethiopia, but in general)

 

[Chididv]

i've been thinking about how mining costs are shooting up everywhere and then there's Ethiopia jumping in with some of the cheapest electricity around ($0.054/kwh). It's pretty cool to imagine Africa shaking things up in crypto mining like this! I wonder if Ethiopia can really go toe-to-toe with big shots like China, the US and Kazakhstan. What do you think, can they pull it off?

You may also take into the account of infrastructure facilities if you really want to compare it with China along with the average temperature because cooling plays a major role in the effectiveness of the machine. But in general cheaper cost mean highly profitable so anyone who wants to open a farm on decent scale can consider such nations.

 

[Buchiw4]

You may also take into the account of infrastructure facilities if you really want to compare it with China along with the average temperature because cooling plays a major role in the effectiveness of the machine. But in general cheaper cost mean highly profitable so anyone who wants to open a farm on decent scale can consider such nations.

Cheaper cost of mining may be counter productive in terms of the quality or the durability of the mining machines. I think that consideration should be given to durability of mining machines which could hinder profitability at the long run. In other words, if the machine are not durable, this could lead to extra cost, especially when repurchasing the same machines in a short periods, and the end, poor returns.

In my opinion, starting a Bitcoin mining farm should require solid mining equipments that will last longer than purchasing low quality ones.

 

[Onyeka2mh4]

The cost of electricity is one of the main factors that make mining profitable, but it is not the only factor. There are several factors such as customs duties, legal status, renting the place, cooling costs, electricity continuity, and security.
+ capital recovery costs, depreciation, and the price of Bitcoin.
Calculating all these costs, along with the possibility of securing a cheap, long-term electricity contract, will determine your profitability and whether the project is worthwhile.

 

[Eze9r]

The cost of electricity is one of the main factors that make mining profitable, but it is not the only factor. There are several factors such as customs duties, legal status, renting the place, cooling costs, electricity continuity, and security.
+ capital recovery costs, depreciation, and the price of Bitcoin.
Calculating all these costs, along with the possibility of securing a cheap, long-term electricity contract, will determine your profitability and whether the project is worthwhile.

Electrical costs is generally a problem of mining. The problem is that in some regions and countries electrical tariff is very high and as a result of that mining would not be profitable since most hardware do consume electricity.
Over time in discussions like this people often suggest other alternative methods of harnessing electrical energy however the cost of building most of them and also maintaining them is still a problem.

 

[Nnamdi2]

i've been thinking about how mining costs are shooting up everywhere and then there's Ethiopia jumping in with some of the cheapest electricity around ($0.054/kwh). It's pretty cool to imagine Africa shaking things up in crypto mining like this! I wonder if Ethiopia can really go toe-to-toe with big shots like China, the US and Kazakhstan. What do you think, can they pull it off?

So cheap that's 4 times cheaper than our electricity rates, good for mining and will yield you good profit, The miner just need a good miner I'm sure there are miners in that part of the world; this article reflects it

over a dozen Chinese crypto mining firms have signed electric supply deals with the national utility Ethiopia Electric Power (EEP). Electricity accounts for the bulk of crypto ‘mining’ costs.

https://www.ntu.edu.sg/cas/news-events/news/details/ethiopia-is-a-new-frontier-for-chinese-crypto

After the mining ban back home these Chinese mining firms find a new home in Ethiopia.

 

[Obi1wj]

I see the movement started back in 2022 and there have been contracts already signed with companies that are into bitcoin mining. The main problem here is if the country's infrastructure can handle the sudden surge in power consumption once more big companies join in. It's not too long ago when there was a nationwide power outage there which lasted for about 6 hours.

 

[Uchefqw2]

I see the movement started back in 2022 and there have been contracts already signed with companies that are into bitcoin mining. The main problem here is if the country's infrastructure can handle the sudden surge in power consumption once more big companies join in. It's not too long ago when there was a nationwide power outage there which lasted for about 6 hours.

The issue is not wholly on how cheap the power rates that the country can offer...but how they can handle the possible demand in case there will be more locators that can be attracted due to cheap electricity rate. Now, I am assuming that there is a good level of governmental involvement here so investors can be protected and not lose their money in the process. So maybe the best thing to do is to control how many will be allowed to mine within the country according to the capacity that power can be provided. This is surely the role of the government...and if there will be more demand the government can also open up opportunities on power generation. Now, if things are done right, this can help the Ethiopian economy and its economy.

 

[Ada1]

i've been thinking about how mining costs are shooting up everywhere and then there's Ethiopia jumping in with some of the cheapest electricity around ($0.054/kwh). It's pretty cool to imagine Africa shaking things up in crypto mining like this! I wonder if Ethiopia can really go toe-to-toe with big shots like China, the US and Kazakhstan. What do you think, can they pull it off?

I've been thinking about how Ethiopia's super cheap electricity could make it a big deal for crypto mining and honestly, it's pretty cool to see Africa jumping into this! I mean, having a low cost power is awesome but I know it's going to take more than that to keep up with the huge players like China or the US. Still, if Ethiopia gets the right setup, like good internet, solid buildings and smart rules, I feel like it could really stand out. I read somewhere, maybe a blog or a post, that oneminers dot com just opened a hosting center there, which got me excited because it shows big companies are noticing Ethiopia too. I love the idea of more businesses jumping in, it could turn the place into a real hotspot for mining. I'm curious to see how it all plays out, especially since I've always thought Africa's got so much potential to shine in stuff like this.

 

[Yetundench]

I've been thinking about how Ethiopia's super cheap electricity could make it a big deal for crypto mining and honestly, it's pretty cool to see Africa jumping into this! I mean, having a low cost power is awesome but I know it's going to take more than that to keep up with the huge players like China or the US. Still, if Ethiopia gets the right setup, like good internet, solid buildings and smart rules, I feel like it could really stand out. I read somewhere, maybe a blog or a post, that oneminers dot com just opened a hosting center there, which got me excited because it shows big companies are noticing Ethiopia too. I love the idea of more businesses jumping in, it could turn the place into a real hotspot for mining. I'm curious to see how it all plays out, especially since I've always thought Africa's got so much potential to shine in stuff like this.

I can't get over how cheap power is in Ethiopia. It's got me thinking it'd be awesome for crypto mining. If they sort out the internet and roads, and maybe add some easy rules, I reckon it could be a hot spot for miners like me.

 

[Onyeka2mh4]

Electrical costs is generally a problem of mining. The problem is that in some regions and countries electrical tariff is very high and as a result of that mining would not be profitable since most hardware do consume electricity.
Over time in discussions like this people often suggest other alternative methods of harnessing electrical energy however the cost of building most of them and also maintaining them is still a problem.

This seems off-topic compared to the topic as we are talking about Ethiopia where the cost of electricity seems to be around ($0.054/kwh). I did a little research and found that the source of the electricity is a dam and we all know that dams provide cheap electricity during the rainy season but when the gates are opened and it is summer the cost is usually high or the communities that consume electricity heavily are shut down.

 

[Eze9r]

This seems off-topic compared to the topic as we are talking about Ethiopia where the cost of electricity seems to be around ($0.054/kwh). I did a little research and found that the source of the electricity is a dam and we all know that dams provide cheap electricity during the rainy season but when the gates are opened and it is summer the cost is usually high or the communities that consume electricity heavily are shut down.

Off topic? Lol. Anyways I don't think you've actually visited most African countries so you may not actually understand my point. Best of based on things like cost of maintenance and power generated from dams they actually ought to be cheaper sources of electrical energy however that is not the case in all countries that make use of hydroelectric power.

My point wasn't off topic since electrical cost is a big problem to mining. Now for example picture someone staying in Ireland and wanting to run a mining setup, electricity costs would be a big problem now. Moving it to Ethiopia will bring up unnecessary Costs and if you decide buying the wares at Ethiopia they are still way more expensive there compared to Ireland.

 

[Nnekav6uo]

i've been thinking about how mining costs are shooting up everywhere and then there's Ethiopia jumping in with some of the cheapest electricity around ($0.054/kwh). It's pretty cool to imagine Africa shaking things up in crypto mining like this! I wonder if Ethiopia can really go toe-to-toe with big shots like China, the US and Kazakhstan. What do you think, can they pull it off?

If they have started then they will give it their full shot and the chances of pulling it off are higher if they really mean it. If the company is new then giving it sometime is the best option because they have to be given permission from official for this, they need good feedbacks, they need better infrastructure to pull this thing.

I have not visited their site yet, or get other information to mark it as fake but if I am seeing another thread on the same topic then it means it have something interested in it and they can be real but giving it a year will be a best choice to do right now because it can be a scam too.