Browsing: cryptos

Environmental impacts of cryptocurrency mining. www.theexchange.africa
  • 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

  • The African continent receives only 2 per cent of the total global value of all cryptocurrencies.
  • Chainalysis ranks Kenya, South Africa, and Nigeria as three of the top ten countries for cryptocurrency adoption globally
  • Many African countries have overlooked this financial innovation, maintaining cryptocurrency exchanges while failing to provide a regulatory framework or allowing trading but not providing an exchange for their citizens.

The development in internet access in sub-Saharan Africa has brought with it new technologies such as cryptocurrencies and blockchain that have the potential to enhance and significantly revolutionise financial and economic sectors.

The African continent receives only 2 per cent of the total global value of all cryptocurrencies. In February 2022, CoinGecko estimated the crypto market to be worth US$2.04 trillion, translating to a US$40 billion African market worth.

The rapid growth of crypto in the continent will profoundly impact the financial sector in sub-Saharan Africa, which

  • Africans, starting from governments, startups, non-governmental organizations, and generally all the people in the continent, are losing much more for failing to adapt to the advancements in the digital world
  • Artists ranging from painters, drawers, actors, musicians, sculptors and writers can now sell their pieces of art across the world as Non-Fungible Tokens (NFTs)
  • Every day, new games are launching on the metaverse and you can buy an altcoin in a game and earn real money from it!
  • bitcoin and other cryptocurrencies are a store of value and could be a haven asset in times of turmoil, playing the same role as gold

Several African governments have stood firm against cryptocurrencies even as blockchain technology takes over the currency markets. It appears that the dice on the shift to cryptos is already cast. The possibilities enabled by these cryptocurrencies make the switch imminent.

The biggest hindrances to the success of…