Login

Lost your password?

Sign Up

Register

Login

Login

Lost your password?

Register

Tuesday, July 5, 2022
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion

Africa's
Investment
Gateway

The Exchange
  • Login
  • Register
Subscribe
This Month's Edition
Previous Editions
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion
No Result
View All Result
The Exchange
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion
No Result
View All Result
The Exchange
LOGIN
alternatetext
Environmental impacts of cryptocurrency mining. www.theexchange.africa

Environmental impacts of cryptocurrency mining. [Photo/Coindesk]

Cryptocurrency mining stagnating the Africa COP27 agenda

There has been a debate about bitcoin mining facilities moving to Africa

by Joseph Kangethe
May 3, 2022
in Industry and Trade
0
Share on FacebookShare on LinkedIn
  • Cryptocurrency mining appears to be going in a different direction from the larger part of the world to fight carbon emissions
  • The United States- where 35.4 per cent of bitcoin mining takes place-releases over 40 billion tonnes of carbon emissions annually, the equivalent of 9 million cars
  • The University of Cambridge states that bitcoin generates about 132.48 terawatt-hours every year
  • However, the cryptocurrency industry is looking to reduce 100 per cent of its carbon emissions by the end of this decade

There has been a debate about bitcoin mining facilities moving to Africa. The continent has the biggest potential to generate renewable energy sources, and the facilities will reduce saturation in the West and Europe.

Why renewable sources of energy? Bitcoin mining counts at the top of the world’s leading carbon-emitting industries!

Cryptocurrency mining appears to be going in a different direction from the larger part of the world to fight carbon emissions! From the look of things, the is a high alarm for increased oversight of cryptocurrency’s environmental impacts as per the Africa COP27 agenda.

Last week, United States Representative Jared Huffman and twenty-two other Congress members sent a letter to the Environmental Protection Agency (EPA) Administrator, Michael Regan, regarding cryptocurrency mining operations.

Read: Low-carbon approach to developing clean energy sources in Africa

“We have serious concerns regarding reports that cryptocurrency facilities are polluting communities and have an outsized contribution to greenhouse gas emissions,” Jared Huffman said.

Bitcoin mining facilities in Africa.
Bitcoin mining facilities in Africa. [Photo/The Wall Street Journal]
Many people have limited knowledge of the energy consumed through the mining of cryptocurrencies. The United States- where 35.4 per cent of bitcoin mining takes place-releases over 40 billion tonnes of carbon emissions annually, the equivalent of 9 million cars.

In 2020, Bitcoin’s monthly consumption was estimated at 6.07 terawatt hour, rising to a monthly of 8.92 terawatt hour in 2021. As of January 2022, usage had risen to an estimated 10.95 terawatt hour.

The University of Cambridge states that bitcoin generates about 132.48 terawatt-hours every year.

Proof-of-work behind the energy consumption

There is something in the crypto world called the Proof-of-work in the blockchain science that manages cryptocurrencies. Proof-of-work is a feature in the crypto world that slows down the creation of new information in a blockchain. Change of information in a block, for example, the transfer of cryptocurrency coins from one person to another, requires the re-calculation of the Proof-of-work of all the blocks, which takes at least 10 minutes for every block.

alternatetext

The Proof-of-work process happens so frequently that the energy consumption releases many greenhouse gases to the environment and results in significant electronic waste, challenging the highly specialized and short-lived computing hardware needed to secure the network.

United States lawmakers say that the cryptocurrency industry needs to be held accountable and discouraged from creating any more cryptocurrencies, saying that there is an alternative for the Proof-of-work security procedure that consumes less energy, the Proof-of-Stake.

The rising Proof of Stake alternative is the security upon which the fast-growing web3 technology.

In 2021, Elon Musk expressed his concerns about the environmental cost of bitcoin and suspended buying cars from Tesla through bitcoin.

Cryptocurrencies causing noise pollution.

Communities around cryptocurrency mining facilities have reported significant noise pollution. These facilities’ bitcoin constantly makes a whiny drill-like sound for 24 hours every day.

Read: Mining in Africa: Is sustainability far-fetched?

Cryptocurrency mining stagnating the Africa COP27 agenda. www.theexchange.africa
Cryptocurrency mining stagnating the Africa COP27 agenda. [Photo/Afrik 21]
Many of the claims regarding bitcoin’s environmental impacts have been dismissed, but the roots of their effects continue to run deep. A firm called Galaxy Digital raised an argument in May last year, saying that the global banking system ultimately uses more energy than bitcoin. The unsurety and ignorance of people and governments around the world about the “scam industry” make the fight against pollution caused by bitcoin mining more intense.

However, the cryptocurrency industry is looking to reduce 100 per cent of its carbon emissions by the end of this decade.

“Mining cryptocurrency” means running programs on a computer trying to crack a crypto problem. The greater the power behind your computer, the greater the chance of winning the right to update the blockchain and reap the rewards.

Every time more people join mining, the competition increases. The more machines on the market, the more difficult it becomes to mine bitcoin and the more energy the mining consumes.

Read: Trading strategies to profit from the lucrative cryptocurrency market

 

Tags: AfricaAfrica COP27 agendabitcoinbitcoin mining facilitiesCarbon emissionscryptocurrenciescryptocurrency miningcryptosEnvironmental impacts of bitcoin mining

STATE OF ECONOMY - GET THE REPORT

ASSESSING EAST AFRICA

Loading...

Joseph Kangethe

I am a journalist who is an enthusiastic tech, business and investment news writer from across Africa. There is always something good happening in Africa but most gets lost in the stereotypes. I tell the stories that matter to the Africans for Africa. Have a tip? You can contact me at [email protected]

Related Posts

www.theexchange.africa
Business

Kenya: Food, oil prices force average inflation to rise to 6.3% in first half of 2022

July 5, 2022
www.theexchange.africa
Business

Bolt opens Africa head office in Kenya following $716m funding

July 4, 2022
Africa remains key in Germany finding an alternative to the Russian oil and gas. www.theexchange.africa
Industry and Trade

Germany’s fuel crisis: Africa’s crucial oil and gas role

July 5, 2022
Next Post
Manufacturing Shift: Morocco Adopts hi-tech to conquer European markets. www.theexchange.africa

Manufacturing Shift: Morocco Adopts hi-tech to conquer European markets

Central African Republic is the first African country to legalize bitcoin. www.theexchange.africa

Central African Republic first African country to legalize bitcoin

Biological Oxidation plant at RioZim's Cam and Motor gold mine in Kadoma. (Photo/ African mining brief)

RioZim commissions Biological Oxidation (BIOX) plant for gold mining efficiency

Please login to join discussion




This months edition

Features

Countries

Era of the African Passport: A mixed bag of opportunities?

by june njoroge
July 4, 2022
0

The African passport is a common passport document that is set to replace the existing nationally issued AU member states’...

Read more
Sibongile Thobakgale. She is the area sales manager for South Africa at Aggreko Africa. www.theexchange.africa
Investing

Transforming manufacturing in Africa

by Opinion
July 4, 2022
0

From cement to food and beverages to metal production and processing, manufacturing organisations are looking for sustainable energy solutions to...

Read more
Wallace Manyara. He is the Business Development Manager, Region South & East Africa, Wärtsilä Energy. www.theexchange.africa
Investing

Renewables, gas cheapest ways to meet Mozambique’s electricity demand

by Opinion
July 1, 2022
0

To meet its growing energy needs and increase electricity access across the population, Mozambique must build 1.3GW of new power...

Read more
By 2030, tech financing in Africa will hit US$90 billion. African governments have a lot to do to reduce the risk of investing in tech startups. www.theexchange.africa
Tech & Business

Challenges and opportunities across Africa’s tech ecosystems

by Njenga Hakeenah
July 4, 2022
0

In addition, governments have to make things better for businesses. Currently, tech start-ups have to pay a lot to comply...

Read more
Foreign Currency Auction System Fails to Meet Soaring Demand
Industry and Trade

Foreign currency auction fails to meet soaring demand

by Laurence Sithole
July 4, 2022
0

Despite these fundamentals, the Zimbabwe dollar has continued to slide against the United States dollar prompting the government to take...

Read more

News

Banking
Industry & Trade
Investing
Money Deals
Regional Markets
Tech & Biz
Opinion

Countries

Kenya
Tanzania
Uganda
Burundi
Rwanda
Southern Africa
Ethiopia

More

My Account
Contact us
Advertise
About us
Help Center

Subscribers Center

E-paper
Premium Stories
Education Rates
Corporate Subscriptions
Weekely Newsletter

  • My account
  • About us
  • Advertise
  • Contact
  • Privacy Policy
  • Refund Policy – The Exchange
  • Sitemap

No Result
View All Result
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion
  • Login
  • Sign Up
  • Cart

© 2021 The Exchange - Powered by MediapixManaged by Supported by Digihandler,

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In