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Volcano in Kenya used for Bitcoin mining – Jack Dorsey supports the project

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In a remote region of Kenya, a group of Bitcoin miners have found an innovative way to power their operations and provide electricity to rural households.

Volcano in Kenya used for Bitcoin mining – Jack Dorsey supports the project

Near Hell’s Gate National Park, the miners have set up shop on the site of an extinct volcano, where they use a mobile container equipped with solar power and energy from a nearby geothermal area.

This unique facility allows them to mine Bitcoin while providing electricity to local communities. The project is led by a startup called Gridless, backed by Jack Dorsey’s block.

Gridless operates six mines

Gridless operates six mines in Kenya, Malawi and Zambia, all powered by a combination of renewable energy sources. “Most people think about Bitcoin and the price of Bitcoin and how they can save value in it or perhaps spend it,” Gridless CEO Erik Hersman told CNBC.

Bitcoin mining is a process that requires significant amounts of electricity. Miners around the world run powerful computers to validate transactions and generate new tokens.

When looking for the cheapest sources of electricity, miners often face challenges due to the fluctuating prices of cryptocurrencies. However, the recent rise in Bitcoin’s value has renewed interest in mining, making it more profitable to continue supporting the network.

Analysts are predicting a shift in the geography of crypto mining following the recent halving of Bitcoin’s value as profit margins narrow. Countries with lower energy costs, such as Latin America, Africa and the Middle East, are attracting crypto miners. This offers renewable energy developers in these regions the opportunity to utilize their excess electricity and support the growing Bitcoin network.

Gridless’ Bitcoin mining operations serve a dual purpose

Founded by Hersman and his co-founders Philip Walton and Janet Maingi, Gridless aims to bridge the gap between electricity generation and capacity in Africa. With approximately 600 million people lacking access to electricity, the company’s Bitcoin mining serves a dual purpose.

They harness renewable energy sources that would otherwise be wasted, powering homes and businesses in underserved communities. The volcanic region in which Gridless operates, known as Hell’s Gate, has a rich history and is home to diverse wildlife. By exploiting the energy potential of the volcanoes, geothermal power plants were built in the region. This approach is not unique to Kenya.

Other countries such as Iceland and El Salvador have also used geothermal energy for Bitcoin mining. However, when coupled with renewable energy sources, it can help release unused renewable energy and incentivize higher production.

Bitcoin miners act as energy buyers, harnessing excess energy from renewable sources and providing financial incentives for further development. In addition to providing electricity to thousands of homes, Gridless has set up container cold storage for local farmers, charging stations for electric motorcycles, and public WiFi points.

Through its mining, the company makes renewable energy economically viable in Africa and at the same time contributes to the secure functioning of the Bitcoin network. “It’s not really sexy,” Hersman said.

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All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.