Ethiopia's Power Crisis Slashes Bitcoin Mining Revenue by One-Quarter

Ethiopia's power crisis is putting a strain on its booming Bitcoin mining industry. The country has reduced power supply to miners by 23% due to severe hydroelectric reservoir shortages caused by El Niño, which has lowered water inflows by 20%. Ethiopian Electric Power CEO Ashebir Balcha said the company will prioritize manufacturing and households.

The reduction in power supply is the latest setback for Bitcoin miners, who have faced restrictions from national power corporations. Last year, miners accounted for nearly one-third of Ethiopian Electric Power's revenue. To survive these restrictions, stakeholders will need to think outside the box.

Bitcoin mining has come under scrutiny for its high energy consumption and resulting climate effects. Some argue that altcoins like Ethereum should switch to a proof-of-stake consensus model. Saifedean Ammous, author of The Bitcoin Standard, believes that global energy consumption for mining has peaked, which could impact the dynamics due to halving every four years.