Mining Bitcoin to protect gorillas in the Congo
Creating economic opportunities for Africa through an alignment of economic incentives
Congo’s Virunga National Park is mining Bitcoin to fund park salaries & public infrastructure, including the local hydro damn, roads, & water pumping stations. This infrastructure in turn, supports regional economic development, and offers an unconventional path towards economic hope compared to those offered by the IMF and World Bank’s regressive structural adjustment policies.
“Virunga badly needs money, and the region badly needs opportunities. The Congolese government provides around just 1% of the park’s operating budget, leaving it to largely fend for itself. That’s why Virunga is betting big on [Bitcoin]” — Adam Popescu, Author (Source)
An elegant system of economic incentives
Bitcoin mining presents a novel way to subsidize or fund public infrastructure, besides the traditional taxpayers and ratepayer (users) pathways: a way that’s based purely on an elegant system of economic incentives. The economic incentives are aligned with public policy outcomes: reliable and low cost power, optimized resource use, and lower greenhouse gas emissions — a traditional cost center.
Bitcoin miners are anchor tenants for new energy generation that wouldn’t otherwise exist in rural sites where traditional industrial or commercial customers are unavailable. Miners provide a predictable revenue stream and help get public infrastructure projects over their hurdle rates.
Energy represents 84% of a mining operations’ operating cost, so Bitcoin miners seek out cheap energy sources globally and they are location and energy source agnostic — only a satellite connection is required. Miners are buyers of first resort — they always want to be running — and they are also buyers of last resort for over-producing energy locations, which allow generators to become economically viable. As consumer demand for power grows in a community, Bitcoin mining can be decreased or removed entirely, but the key point is that it enabled critical energy infrastructure to be built out.
Plan ₿ for economic empowerment
“Power from Virunga’s hydro plants has created over 12,000 jobs; since the average Congolese household has at least five members, one job is an outsize stabilizer in a place where desperation drives radicalization” Adam Popescu
Virunga national parks’ Bitcoin mining project is not an isolated case study, it’s happening in the US — where miners collocate with transmission constrained renewables in states like Texas — and other parts of Africa. Similarly, Gridless Compute is subsidizing renewable energy mini grids across Africa, increasing electrification to local communities and supporting the construction of sustainable hydro power.
“Africa needs affordable electricity. Our work in supporting renewable energy mini grid developers fills a gap, helping developers expand faster, be more sustainable, and serve thousands of households. This investment, and the high caliber of partners that are coming alongside us, means that we can accelerate our rollout knowing that we have both the capital and strategic support required.” Erik Hersman, CEO of Gridless
Miners are enabling the transition to a low carbon economy and economic empowerment in all corners of the world, and stories such as these are beautiful examples of how Bitcoin can be a force for good: environmentally, economically, and socially.
