Bitcoin miners might soon flood to Nairobi to utilize the geothermal power available for them right now. An energy company makes this power source available and urges miners to purchase it.
KenGen operates a renewable energy facility in Olkaria, Nairobi. They have enough space in this facility where bitcoin miners can open up shop for their activities. The site is also closer to the geothermal power station.
It generates 86% of the energy from renewable sources, specifically from Great Rift Valley ground source heat. Right now, the company wants the miners to flood into Kenya and utilize the power. Regarding this invitation, the geothermal development director Peketsa Mwangi has stated that they’re looking forward to promoting stability in Bitcoin mining through this provision.
There haven’t been reports of miners’ reactions to this news. Also, before now, there were no mining operations in the African nation according to the reports of the Cambridge Bitcoin Electricity Index.
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However, Kenya is a viable opportunity for miners seeking energy sources to mine. The country can boast of 10,000 MegaWatt of geothermal energy. Even KenGen can boast 863 MW after installing its plant in April.
What Benefits Will Follow Bitcoin Miners Move To Kenya
If KenGen successfully attracts Bitcoin miners to Kenya, many benefits will follow for the miners, the company, and the Kenyan government. One of such glaring benefits is having a haven for mining activities.
That way, miners will enjoy a sustainable environment for their actions instead of experiencing the disarray caused by the Chinese government.
Let’s recall that China rose last year to reduce crypto mining activities within its State. The reason was excessive consumption of energy. Miners then had to move to the USA in search of a conducive environment. But this invitation is a welcome development if they take up the offer.
Another benefit goes to the energy company. This move will develop its power grid, increase its supply, and reduce electricity costs. According to Statista, 1-kilowatt hour of power in Kenya is $0.22, higher than any country. This is because of the inability to connect totally to the centralized grid, which costs a lot.
As for the Kenyan government, this is an opportunity to achieve more significant revenues. First, of course, the miners will pay fees and taxes covering their activities in the country. As per sources, the Kazakhstan government is already planning to earn at least $1.5 billion from the miners in a five-year duration.
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Also, there will be a higher level of crypto exposure, adoption, and investment in Kenya. Presently, the citizens are active in crypto investment through P2P transactions, and the country’s central bank is also looking into a CBDC.
Featured image from Pexels, charts from TradingView.com