Bitcoin Saves Africa?! 🤯

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So, Africa’s got too much electricity, has it? Like, when does that ever happen? 🙄 And Bitcoin‘s the answer? Oh, honey, let’s see about that.

Table of Contents (because who has the attention span these days?)

Zengamina’s dimming vision finds a spark

Picture this: Zambia. Remote. Hydroelectric plant. Overflowing with electricity. And nobody to use it. It’s like having a fridge full of champagne and no one to celebrate with. Tragic. 🥂

Three million dollars of charity money later, they built this 1-megawatt thing. Supposed to power hospitals, schools, the whole shebang. Good intentions, obviously. Bless. 🙏

But, SURPRISE, barely anyone was using the damn electricity. Population of 15,000. No industry. Basically, a ghost town with really well-lit ghosts. 👻

So, half the electricity? Just chucked back into the river. Wasted! All that potential just swirling down the drain. Makes you think, doesn’t it? 🤔

By 2022, it was all going tits up. Expansions on hold, money drying up, the whole dream fading faster than my last relationship. Then, BAM! Enter a knight in shining… shipping container?

Gridless, a Nairobi-based Bitcoin startup, rocks up with a container full of Bitcoin miners. Like a mobile phone mast, but for digital gold.💰

Plugs straight into the mini-grid, slurps up all that excess power, and spits out Bitcoin. Genius or madness? Jury’s still out.

Each machine makes about $5 a day. Apparently. Depending on the whims of Bitcoin, of course. Crypto, eh? More volatile than my mood swings. 🙄 Gridless then shares the loot with the hydro plant, now contributing a third of Zengamina’s income.

Result? Cheaper electricity, more connections, the plant’s actually doing its job. So far, so good. But is it too good to be true?

Big question: Is this a fluke, or a genuine solution for rural electrification? Let’s dive deeper, shall we? (I need a drink… 🍷)

Gridless rigs offer a plug-and-play fix

Zengamina’s not alone. Loads of these small energy projects in Africa are swimming in excess power. Like a bathtub with the taps left on.

Mini-grids, built with donations and grants, often run way below capacity. Not because they can’t make electricity, but because no one’s there to use it. It’s like organizing a rave in a library.

Apparently, 65% of these things are commercially useless, propped up by handouts and good intentions. Sustainable? I think not.

Gridless reckons they can fix it without the charity crutch. They’ve stuck these mining containers at six hydro sites across Africa. Using clean energy where demand’s too low to pay for it.

The miners act as a financial buffer, gobbling up wasted energy and turning it into cash. Like a really annoying but profitable houseguest.

In Zengamina, it’s working. Coverage up, prices down, more people getting connected. Small businesses are thriving. Electricity is actually useful. Imagine that. 🎉

But, plot twist! This isn’t forever. Gridless sees itself as a temporary tenant. When the local community starts using more power, they pack up and leave. Like a summer fling. 💔

Zengamina’s even planning to connect to the national grid soon. Proper utility deals and all that. Then, bye-bye mining rig. Off to find another energy crisis to solve. Or create.

The fine line between boost and burden

Now, Gridless wants to build its own hydroelectric projects. Small ones, run-of-river, no dams. All nice and eco-friendly. 🌿

Their plan? Bitcoin mining from day one. A starting point, a cash injection, while the local energy demand slowly catches up. Baby steps, darling.

One of the founders calls it a “consumer-driven, adaptive energy model.” Sounds fancy. Basically, start with mining, end with powering communities. Simple. In theory.

There’s actually potential. Africa’s got tons of untapped hydropower. Mostly in places no one cares about. Until now, maybe. 🤔

Bitcoin miners could be the first customers, paying for the infrastructure before anyone else bothers. Capitalism, eh? 🤷‍♀️

BUT… (there’s always a but, isn’t there?) Some people worry the miners will compete with locals for electricity. If Bitcoin prices go crazy, will they choose crypto over communities? Greed is a powerful motivator.

It’s happened before. Kazakhstan got screwed over when miners flooded in after China banned crypto. Electricity use shot up, blackouts everywhere, government intervention. Messy. 💩

Even in the US, they’re having problems. Regulators are trying to control mining operations during peak hours. Fair enough.

One gas-powered mining plant in New York got shut down during a cold snap. To free up power for heating. Oops. 🥶

Gridless says they’re different. Off-grid, renewable energy, working with local communities. All sounds very wholesome.

They also claim to prioritize local users. Mining gets scaled back when demand increases. Yeah, yeah, we’ve heard it all before.

Thing is, money talks. If Bitcoin goes to the moon, even off-grid miners might be tempted to sell power to the highest bidder. Who needs communities when you’ve got crypto riches?

Without clear rules, this whole thing could go south fast. The same solution that helps rural development could become a problem. A bloody nuisance, even.

Can this model scale?

Zengamina’s success is getting noticed. As everyone freaks out about Bitcoin’s energy use, more off-grid projects are eyeing mining as a way to stay afloat. 🌊

Off-grid mining used to be niche. Now, it’s becoming mainstream. Cleaner, yes, but also practical. Miners can dodge regulations, avoid peak tariffs, and stay out of political squabbles.

It’s happening in Congo, Ethiopia, Paraguay, Suriname. Hydro plants powering Bitcoin mines. Governments selling excess electricity to industrial miners. All about the money, honey. 🤑

If the incentives align, it could work. Energy developers get a steady income, miners get cheap power. No subsidies, no big transmission lines. A win-win? Possibly.

But it’s not guaranteed. You need clear agreements. Community access comes first, revenue-sharing is transparent, and there’s a plan to shut down mining when better options appear.

Gridless, for example, plans to quit Zengamina when they connect to the national grid. Selling power to the utility will be more profitable. Sensible.

This phase-out is key. Mining is temporary. A bridge until local demand grows. The equipment is portable, ready to move on. Like a traveling circus.

Bitcoin mining isn’t solving energy problems. But it can be a useful tool. A way to monetize stranded power. To activate infrastructure. To make something out of nothing.

With Bitcoin near $88,000 (apparently), and mining profits shrinking, more companies are looking for cheap, regulation-free energy. Desperate times, desperate measures. 🤪

In regions with spare capacity, this model could scale. Quietly, pragmatically, if they’re left alone to get on with it. But will they be? That’s the question, isn’t it? 😈

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2025-03-26 22:42