Despite Challenges, Nigerian Bitcoin Miners Are Poised To Profit

By Bitcoin Majalah - 1 year ago - Waktos maca: 8 menit
Rebo, 10 Agustus 2022 10:30

Despite Challenges, Nigerian Bitcoin Miners Are Poised To Profit

Nigeria is leading Africa in Bitcoin adoption, and miners there are overcoming regulatory and power grid challenges to find economic freedom.

Ieu mangrupa opini redaksi ku Emeka Ugbah, host of the “Bitcoin This Blockchain That” podcast based in Rwanda.

Imagine that you are nursing a cup of caffé mocha in a coffee shop in Lower Manhattan. Then you overhear this African-looking fellow — who, from his countenance, confident demeanor and high-energy voice, strikes you as a Nigerian — saying that he is a Bitcoin miner. You would probably try to get a better glimpse of the fellow, because you immediately think that he is one of them — those scammers who slide into DMs, promising mouth-watering ROIs if you invest in their Bitcoin mining schemes. He can’t possibly be legit.

Leres, kuring sigana bakal mikir sami upami kuring aya di stan sareng anjeun, sanaos kuring urang Nigerian.

Urang kabeh terang, anu Nigeria is considered the African nation with the highest adoption rate of bitcoin jeung cryptocurrencies — a story that I love to tell. However, having Bitcoin's proof-of-work consensus mechanism in mind and how dependent on power it is, as well as the fact that Nigeria isn't a dependable choice when it comes to cheap or stable electricity, éta hésé ngabayangkeun yén sagala kakuatan hash signifikan bisa emanate ti nagara.

Janten, saleresna, anjeun panginten leres panginten yén sasama henteu sah. Tapi kedah anjeun?

Obstacles For Mining Bitcoin Di Nigeria

Kurangna Daya Diandelkeun

Nigeria nyaéta 14 nagara Afrika panggedéna ku landmass jeung na pangeusina, kalawan populasi leuwih ti 200 juta jalma, diantarana kurang leuwih 52% cicing di perkotaan. Éta matak ngabingungkeun terang yén jalma-jalma ieu kedah ngandelkeun depresi 4,000 megawatt yén jaringan listrik bangsa junun ngahasilkeun.

I used the adjective “depressing” because that is the actual state of the power situation in the country. Homes and businesses — from small scale to larger establishments — are often forced to secure alternative power sources or risk staying in the dark and ceasing operations until power returns. These alternative power sources, from petrol- and diesel-powered generators to solar, are supposed to serve auxiliary power in typical scenarios. But in the case of Nigeria, they have now become the main sources of power for many in the country.

So, it's almost inconceivable that Bitcoin mining can be successful in the country. But it is — Nigeria does indeed contribute to Bitcoin’s global hash rate, and I'll tell you how as we progress with this conversation.

Teu jelas, Borderline-musuhan, Regulasi Lansekap

As with nation states, Nigeria’s stance on Bitcoin jeung cryptocurrencies geus rada combative.

Urang émut émut yén dinten Jumaah anu takdir, Pébruari 5, 2021, when the apex bank, the Central Bank of Nigeria (CBN) released a statement warning all financial services providers to discontinue any bitcoin- or cryptocurrency-related transactions. And the warning didn’t end there: banks were also directed to freeze the accounts belonging to any individual or entity that had previously utilized the bank’s infrastructure as an on- or off-ramp into and out of cryptocurrency exchanges.

Manyaaccounts salajengna dibekukeun sakumaha per diréktif, nu maksa Nigerians pikeun beuki ngadopsi sistem peer-to-peer tina bursa nilai which was, after all, one of the reasons behind the creation of Bitcoin in the first place: the transfer of value from person to person, without the need of a trusted third party.

Sanaos kanyataan yén Komisi Sekuritas sareng Bursa Nigeria (SEC) nembe ngaluarkeun sababaraha peraturan nu sigana rada kirang hawkish arah aset digital, hal tetep sakitu legana can écés ngeunaan naon juru régulator bakal nyandak arah pertambangan, utamana kusabab panambang (kusabab kurangna istilah hadé) "nyitak duit."

Resilience Ditengah Musuh

Aya plethora hal - hal hébat - nu Nigerians dipikawanoh pikeun, sanajan sababaraha hal munggaran nu datang ka pikiran nalika loba jalma mikir Nigerians tiasa kirang ti kapercayaan mereun.

Sanajan kitu, éta ogé dipikawanoh ku loba nu Nigerian bisa salamet, komo mekar, dina kaayaan harshest. Ieu dibuktikeun dina kanyataan yén hiji ti unggal lima urang asal Afrika - kapanggih dimana wae di dunya, euweuh urusan kumaha inhospitable tempat - nyaeta Nigerian.

As a Nigerian, I can attest to this resilience. We have this innate ability to adjust and adapt to almost any condition, almost anywhere that we find ourselves. At this point in the conversation, the fact that there are Nigerians who have ventured into Bitcoin mining, damning the debilitating odds, shouldn’t be too much of a surprise, right?

It is challenging to determine when exactly the first ASIC based in Nigeria connected to the Bitcoin network, because miners there are putting a great deal of effort into staying as off-the-radar as possible. And yes, I know that the hash rate generated from the country might not amount to as much as a blip or a pulse in the network. As a matter of fact, a fairly-debated sumber data has it that Africa as a whole contributes less than 0.2% of the global Bitcoin hash rate. However, the innovative effort the Nigerian miners are putting into securing the world’s most decentralized, censorship-resistant monetary system shouldn’t go unnoticed — their stories shouldn’t stay untold.

Stories From Nigerian Bitcoin panambang

When I started researching this topic, I was privileged to get in touch with a few individuals who mine Bitcoin in Nigeria. We had long conversations about how they got into it and how they are managing to navigate through the challenges they are constantly faced with. For security reasons, which border around the hostile regulatory landscape I mentioned earlier, they chose to stay anonymous, so we will be referring to them by pseudonyms.

The first individual, let's call him Kola. Relatively new to Bitcoin mining, Kola began his journey in September 2021 with just one unit of the Antminer S9, which he purchased for about $450 to $500 at the time. According to him, he decided to take a stab at mining with that one ASIC but has since then expanded and acquired seven others, all of which are Innosilicon T2THs, all purchased as used miners from China and shipped to Nigeria. Then, so as not to give room for too many questions from the authorities, especially considering the fact that he is importing "money printing" machines, the ASICs were cleared at customs as computer graphics processing units (GPUs)

Kola chose not to divulge his location, however, stated that his operation is situated somewhere in the north-central part of the country, close to one of the nation's hydroelectric power sources. As a result of being close to this major source of power which makes it relatively cheap, Kola spends as little as $15 to $20 monthly on electricity to run his operation. However, seeing as the “Nigerian factor” still comes into play, he said that he gets between 20 to 22 hours of electricity supply per day. Being solely dependent on that one power source means that he is subjected to shutting down operations for between two and four hours each day.

Ayeuna, ieu sakedik deui anu pikaresepeun: Kusabab kaayaan pangaturan anu teu jelas sareng otoritas kakuatan lokal, operasi pertambangan Kola dihapus dina buku salaku fasilitas anu nyayogikeun server pikeun jasa nyéwa panyimpen awan. Menarik, henteu?

Kuring kungsi ngobrol panjang sareng Kola sareng abdi tiasa teras-terasan ngajéntrékeun sadayana anu urang bahas, tapi tulisan ieu sanés ngan ukur ngeunaan paguneman kuring sareng anjeunna, janten kuring bakal ngagentos di dieu.

Now, the second individual is a more seasoned Bitcoin pleb, who has been in the space considerably longer than Kola. Let’s call him Gbenga. He requested that I keep a lot of what he shared with me about his setup off the record, so I'll be more discreet with specifics here.

With several Antminer S9 ASICs, all purchased as “used,” and imported from China, again as computer GPUs, Gbenga’s operation is situated in the outskirts of the nation's largest business hub, Lagos. Much like Kola, Gbenga started his mining venture with a much lower number of ASICs than he operates with now, and he has exponentially expanded, seeing as he is a bigger player in the space.

setelan Gbenga mangrupa salah sahiji loba usaha di nagara nu gumantung kana sumber kakuatan alternatif pikeun listrik, Dina kasus na, generator solar-Powered 200 KVA. Ayeuna, ieu bakal, dina kaayaan idéal, moal jadi hiji usaha sasaena, tempo kanyataan yén harga per liter solar di nagara mana pikeun saeutik leuwih ti $ 1 dina waktu tulisan, sarta operasi na ngalir ngaliwatan 300 liter per poé rata-rata atawa, dina poé dimana eta meunang catu daya ti grid nu, salila kira satengah poé. Tapi Gbenga gaduh afiliasi sareng sababaraha individu anu ageung dina industri minyak sareng gas, janten anjeunna nampi solar dina harga anu langkung mirah tibatan anu sayogi di pasar terbuka.

According to Gbenga, his major challenge has been the constant need to maintain and repair the ASICs as they often develop power-related issues due to the unstable supply of electricity. He, however, has a team of skilled technicians and electricians, recruited from the pool of local talents, that didn't initially have experience working on ASICs, but as a result of working in Bitcoin mining and with Gbenga, have gained the requisite skills.

Bitcoin Mining’s Future In Nigeria

Aya kitu loba lianna Bitcoin miners in Nigeria. A lot of them weren't enthusiastic to talk to me because they are worried about their safety — for good reason, too. However, that doesn't mean that there aren't big players already in or researching ways to get into the mining space.

We may yet be a long way away from Africa contributing to a large portion of the global Bitcoin hash rate, but with individuals like Gbenga and Kola, as well as all the others within Nigeria and Africa as a whole, along with the ever growing adoption of Bitcoin in the continent, it may not be too far fetched that the future may not be so distant.

The greatest challenge facing it all is funding. We all know how difficult it is to get loans in the traditional financial space, particularly in Nigeria — you have to know someone who knows someone. But the playground will definitely look different the minute that corporate entities and big businesses — from the telecom space, to banking and restaurant chains, which have tons of stranded electricity because they have to keep their facilities running round the clock — realize what Bitcoin is. It incentivises the use of stranded electricity, converts that with the proof-of-work protocol into a store-of-value asset with a deflationary supply, and yields asymmetric returns.

Ieu tulisan tamu ku Emeka Ugbah. Pamadegan dikedalkeun sagemblengna sorangan sarta teu merta ngagambarkeun pamadegan BTC Inc atanapi Bitcoin Majalah.

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