TPB Weekly Digest #013
The Economist covers renewable Bitcoin mining in Africa, Craig Wright is not Satoshi (and never was), Biden's Bitcoin mining tax, and more
Welcome to the latest edition of the TPB Weekly Digest! In this newsletter, we bring you some of the most significant Bitcoin-related stories from the U.S and around the world, spanning a broad range of topics including politics, the environment, human rights, and other progressive issues. Join us here each week as we explore how Bitcoin intersects with these crucial themes, offering insights and updates that matter to you.
An Analysis of The Economist’s Article: Why Africa is crypto’s next frontier
More mainstream and historically reputable publications are covering Bitcoin mining, and what was trending toward only negative representation is now continuously shifting to positive elements, particularly regrading Bitcoin mining’s potential in Africa.
The article discusses Africa's emerging role in the Bitcoin mining industry, attracted by its untapped renewable energy sources and the continent's search for economic opportunities. Ethiopia and Kenya are highlighted as potential key players, as well as Gridless, Erik Hersman and Troy Cross, leveraging cheap and renewable energy to power mining operations. However, the article raises concerns about the environmental impact, regulation, and the actual benefits to local economies are raised. The narrative also touches on the broader interest in Bitcoin in Africa, driven by unstable local currencies, while cautioning against seeing Bitcoin as a simple solution to complex economic issues.
This tale of caution in the last paragraph of the piece felt more like a “because we had to” than a realistic and strong take. What should be emphasized about Bitcoin mining is that miners will always pursue the cheapest power. Now, while that is not a blanket excuse to say “well Bitcoin miners will always do the right thing for the environment, communities, and workers,” (they are companies and corporations after all, not all equal in commitment to these things). In Africa and many places globally, the cheapest power is stranded waste energy without a use (or underutilized) and natural renewable sources such as rivers, dams, and in some cases solar and wind. In addition to the environmental arguments for such projects, this quote that the economists forges onto their mainstream reader is critical to understand what we mean by Bitcoin mining expanding the build out of renewables:
“Yet many of the continent’s renewable-energy projects are stalled because there are not enough local consumers who are able to buy electricity to make them financially viable. By offering themselves as buyers of last resort, crypto-miners can help to stabilise demand for power and ensure utilities turn a profit. In doing so, they might also incentivise the investment needed to provide electricity to the estimated 600m people in Africa, roughly half its population, who do not have access to power from the grid.”
Now it is important to ensure miners focus on people and planet when continuing these projects, and I think Gridless is setting a great example of supporting local community efforts, renewable energy, and being a good representation for when someone asks What is Bitcoin?, we can tell them This is Bitcoin.