Topic: Difficulties one would have to face when setting a Bitcoin mining farm in Naija. (Read 178 times)

Never say never mate. Impossibility is just a word and time alone makes things that were said to be impossible to become possible.  I trust there was a time nobody had expected that the UAE will take such decision policy but now they do.

I understand the venom become is portrayed to be in the lens of the government who are vehemently opposing it, but we can't be 100% certain that a change with time isn't possible.

No be small witchy people oh. Just take Aliko Dangote for instance, by just building a refinery  for inside the country, nnpcl wan frustrate the man life say him wan com hijack their monopoly market. Then how much more say na bitcoin mining farm the mam come build. That be say na bomb nah.... Now the mam come the regret why him no use that money buy Arsenal wen him been get the opportunity than using it to build refinery inside him own countt

There are some parts of the country where their electricity is stable, like a particular local government in Rivers State called Ogba/Egbema/Ndoni and in particular clan/kingdom called EGI.
The light there is stable and free. I think that's enough energy but just regulatory issues which if only the government can allow the farming of crypto and legalize it's usage, it will be of a great benefit to the people here.

A desired mining location based on the price for kwh as we still pay one of the cheapest electric bills in the world but the problem is stability, what's the use of cheap electric tariff if you're not getting value for it.


I've lived in the North and the "steady" electricity thing is not true and why would anyone rely on Govt power when they could literally set up a good solar system for 24hrs light taking advantage of the hit temperature.

Power supply go be the person major problem. Band A areas dey get 23hrs light but the tariff cost no be here. These Band A areas na only prepaid meters them dey use, which means you go dey pay as dey use. At the end of the month, the cost of electricity bills fit put your account for deficit. The solution to this problem na to site your mining farm for the North. If you don stay north before you go know say light dey always dey and the estimated bills way them dey bring dey small. The only challenge with this plan na say security no dey guaranteed if you site your mining farm for any of the northern states.

Like a couple of members already said , its got to be power. I know there's Band A right now that provides above average power supply than we are used to which changes a few things but still leaves a lot to be desired for mining Bitcoin in the country. The fact is that more established mining farms with better equipments and power supply still end up in the red after taking out expenses.

Imo, if you solve the problem of power (cheap power and has to be constant, there's still regulatory issues to contend with.

I think the issue of electricity is practically a massive problem that anyone can struggle with while setting up a mining farm in the country. I know that some people might feel that money can literally take care of that, but maybe you haven't had a thought about how often how power grid fails occasionally. Truth is, electricity is just a massive problem. Assuming someone who was interested in starting a mining farm, happen to negotiate an amount to be paid for electricity consumption, will there be any guarantee that the generated electricity will be constant without going out for a certain period of time?. So, I just feel the inability to get a constant power supply, might just be an issue for someone who wants to startup a mining farm in Nigeria. Having a massive generator to support it won't even work, because these mining devices needs to be functional at all times, and not electricity going out on them.

Taxation is something that i feel can affect setting up a mining farm in Nigeria, if the government finds out that such a farm is running, the state government of which ever province the farm is set up can compel the owner to pay tax and some other settlement fee. Secondly, the availability of internet connection, high security in the area and availability of steadily power supply. Those are something that needs to be considered because if not properly analyzed, the farm might not run efficiently.

You have to know that any capitalist with an exposure to such amount of funds in billions can secure their own electricity with green house emissions, biofuel. That is, they can afford to provide their own electricity by investment in any other source of energy that may be explored and that resolves the issues of electricity.

Also, in some major cities of this country, I think we can agree that 5G up to 7G will soon become a more standard network because whether we like to agree or not, 3G and 4G is only as fast as the operating system our devices use and a mining farm would require a faster network speed for sure, that means there would have to be provisions for personal internet connectivity access or big satellites and mast for Internet access.

I fear though that the issues from government/agberos interference asking for regulations or levies might become too heavy as anyone around such a project would want to be greedy to earn from it alone, without a thought to let it thrive and be a source of revenue to the state or citizens living around the environment of the mining farm.

Nigeria, as a country doesn't have the most important requirement for setting up a mining farm in the country and as it is presently in the country it will be a waste of time and resources for anyone to go into mining business in Nigeria. Electricity is the main requirement for miners and as you and I knows we have always been having epileptic power supply in the country, sometimes we can go on for days even weeks without electricity supply. I believe that using alternative sources of electricity generation like the solar system might not be profitable to miners because setting it up will be very expensive not to talk of mentainance and replacements of worrnout parts like the batteries.

Putting all the other disadvantages to operating mining farms in Nigeria, like our slow internet connections compared to advanced countries like UAE and the security of the mining farms in the country, electricity generation remains the main demerits of mining farms in the Nigeria. Except a mining farm is run in collaboration with the government or basic amenities like electricity supply is guaranteed including improved security, Nigerian environment is not ready for mining business.

To set up a minning rig in Nigeria could be a very difficult task and I think most of the major Setbacks as being mentioned by the comments above  and I think  Electricity could be somehow a challenging issue.
Hence, the hash difficulty keeps increasing overtime  and more and more hardware needs to be created to meet up with the process and this obviously means the higher the hash difficulty gets the more the computational power needed to solve it and the more the electricity consumption becomes.

Thus , the profit you will be making from the pool might not be worth it even if you're able to set everything up and meet up with your minning process, not discouraging anyone but what if you just invest with that money, invest on BTC as if you're minning (not practically minning) thus you can keep accumulating using the ideology of maintaining your hardware of paying bill... I mean you  can make more profit with that actually  and you  won't have to worry about any government policy.or likes.

However, either we like it or not minning game is going to shift overtime and there won't be much small minners(that's by then , i guess they willbe more like small minners), rather it will be more of companies and orgs.. it's happening already  but there's still room for every miners at the moment and it might change overtime.

The way this our country dey now, nor be place to start any kind business like that especially the one wey involve crypto. Person wey nor get person fit enter problem based on say dem dey use crypto alone, imagine the kind problem wey you go enter if dem catch you say you dey mine bitcoin. Nor be small problem you go enter. For Naija, the best thing na to dey invest on a low low inside bitcoin dey hold am secretly make government nor know, even some kind of your friends because you nor know who go report you give government say you dey launder money via crypto.

Policies is one very key thing that will mare or make the establishment of such investment in Nigeria and second power then lastly connectivity. As a growing nation yet to be able to permanently solve issues around their basic amenities, investors willing to set up such high power consuming business in Nigeria will have to put to consideration the fact that for an effective and smooth running they will be providing themselves with power as depending on state power will slow them down and affect their productivity. In Nigeria cryptocurrency is yet to gain full adoption because the government is yet to come to the full realization that regulations on cryptocurrency isn't something they can completely achieve meanwhile they want a situation where they can be in complete control of cryptocurrency, and lastly connectivity is something the network providers in this region is yet to complete get solid except you are able to make for yourself a dedicated network which will be expensive so an average person running such in Nigeria will spend moer then some one doing same thing anywhere in Europe.

In setting up a bitcoin mining rig in Nigeria, two things are to be put in consideration and this same things are what is being made common with other bitcoin mining setup in other regions all over the world, the first is the energy source requirement, this is what one should consider on a serious note because many things are going to be demanding by it all, government may try to make it hard under power sectors because of their requirements, except for those willing to set up using a renewable energy source without relying on government, the other second challenge is the aspect of it technicalities, setting up a mining rig requires ones experience as well as money in getting all the necessary facilities to set up the mining rig.

I don't think that we would ever have a time when countries would do the way Dubai is doing. It isn't going to happen. Many countries see Bitcoin as a threat and they treat it like a wanted terrorist talkless of mining it. Na, it is never going to happen.


Village people. As ridiculous as it sounds, it tell you one truth Most Nigerians don't like to see another Nigerian prosper. Once you are getting bigger than them through your mining or more money, they will find a way to sabotage you. They use charms, they report to the government, they'll arrange area boys to destroy your mining rig and many other things. Look around you evidence yakpa. Your fellow Nigerians would make your life a living hell until you abandon your mining project.

The world is 99% capitalist and it is only 1% is socialist oriented. And Nigeria is a pure capitalist society so if you are saying there will be a time for individuals to own their business firms Plus mining, it is already happing and the businessmen in Nigeria are not interested in cryptocurrency and have no good knowledge about nthe innovation and that is what they are even against it. And those countries that their policies are against or regulating the uses of cryptocurrency persecuting the exchanges are because the international capitalists are behind the policies. No country regulate and place economics policy that against it own capitalist in the country. And one tin we need to know be say government na organization set up by di government to control the international and internal affairs for them to do business smoothly. Therefore all government in the capitalist States are working for the benefits of the capitalists of the country. And Nigeria is included. Just that di capitalists e no dey interested in Bitcoin investment. All these things Nigerian government dey do against cryptocurrency because Dangote e no dey interested and the time Dangote or any other capitalist e dey interested to have mining farm or exchanges then all these nonsense go stop.

While Bitcoin mining can be profitable but considering all these factors, it is too expensive and less profitable for an individual set up. The government involvement can create a better possibility of having one mining farm in Nigeria because at their best they can provide every necessary requirement for the farming with little cost compared to an individual.

Constant electricity has been the major problem we facein this country and also to consider how much it will cost to get a power supply to keep the farm always running. Secondly, our internet connection may not be up running at all time, our network providers at times run out from internet connections in a few hours which might affect the mining process.

Outside electricity consumption, I doubt the government policy holds anything much to do here, since they have not bother to consider this aspect of cryptocurrency in Nigeria.
Here are some other difficulty of I think they will face:

• Security & Maintenance:
  We know the cost of getting a mining rig and the need to build a place for them since we can no longer mine bitcoin indoors, security is an important aspect here since theft will have an eye on this especially when they know the price of it. The noise from the machine will definitely attract them more since they love stealing generators.
• Data, connectivity and storage cost:
  Mining bitcoin requires one to run a full Node, which will currently cost around 500gb to download data from the Bitcoin blockchain and then storing this since pruning can't be done by miners i.e they're running full node.
  Though after the 500gb downloaded, the data required to be download is less than a gigabyte, though the bandwidth can consume over a gigabyte daily, here we know how expensive is getting data from our network providers and from the fact that there're sometimes where they may have shitty network and so I think it's better to rely on at least two network service providers or possibly go for starlink also.
  The storage cost will still be consider here since it's not only the 500gb that will be stored, 1Tb will do work though.
   

All these are  some key things to consider and the number of mining power will be important to actually earn something that will be able to cover the cost of  mining and maintenance and getting good profit else all these will just be of waste which willl lead to shutdown in the end

A time may come when many countries will follow the current trend happening in UAE, Dubai and that is, rights being granted to private billionaire capitalist to have their own mining farms set up and operational in the country.
 I know it would help provide good returns to the individual who plans such a setup well and to the government who needs such income revenue to boost its micro economy.

Besides the regulatory actions of the government in many cases, some unfavorable policies and electricity/energy consumption demands of which is a serious concern for mining farms to take into consideration before commencing their crypto mining business;

* what other reasons could be considered responsible in hampering the growth, development, smooth running and success of a Bitcoin mining farm in this country, Nigeria?

*Or, what's some difficulty one would have to encounter when commencing with the setting up and operations of a Bitcoin mining farm in this country, Naija?

Your thoughts are welcomed!