Bitcoin in the Bush: The Crypto Mine in Remote Zambia
The roar of the Zambezi River is deafening, yet another sound cuts through the trees of the Zambian bush - the unmistakable high-pitched whine of a bitcoin mine. Phillip Walton, overseeing a shipping container filled with 120 computers, proudly states, "It's the sound of money!" These machines tirelessly verify bitcoin transactions, earning rewards in the form of bitcoin.
The Power of Proximity
Located in the far north-western tip of Zambia, this mine is unique. It is powered by a hydro-electric power plant that utilizes the river's flow to generate clean electricity. The proximity to this renewable energy source means electricity is not only abundant but also incredibly cheap, making it economically viable for Phillip's company, Gridless, to operate here.
Each machine generates approximately $5 (£3.90) daily, with profitability even when bitcoin prices fluctuate. Phillip emphasizes the strategic partnership with the local energy provider, which allows them to share revenue and benefit from lower operational costs.
The Zengamina Hydro-Power Plant
The Zengamina hydro-power plant, established in the early 2000s with $3 million in charitable donations, initially aimed to power the local hospital. Now, it services around 15,000 people. However, slow community engagement left much of its capacity underutilized. The bitcoin mining operation has become a game-changer, accounting for about 30% of the plant's revenue, thus enabling lower energy prices for local residents.
Community Impact
Despite the bitcoin operation's significance, many locals remain unaware of its intricacies. For residents like barber Damian, the arrival of electricity has been revolutionary. He recounts how power transformed his shop into a bustling hub, enabling him to earn money and support his education. Other locals, like sisters Tumba and Lucy Machayi, reflect on their lives before electricity, emphasizing that it has drastically changed their ability to communicate and access modern conveniences.
Looking Ahead
As the hydro plant expands and connects to the national grid, the bitcoin mining operation may no longer be viable. However, Phillip and his team view this as a success, having contributed to the community's growth while profiting from bitcoin. Gridless is also exploring new opportunities, planning to build their own hydro-plants to harness renewable energy for bitcoin mining, aiming to bring electricity to more rural areas.
Challenges and Opportunities
While the path ahead is promising, Gridless faces resistance from some authorities who view bitcoin as an energy-intensive venture. They stress that their priority will always be to serve the local community. The future of bitcoin mining and its environmental impact continues to be a topic of debate, but projects like Zengamina offer a glimpse into a more sustainable energy model.
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