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Comparing the actual cost of gold mining in Africa with bitcoin mining – Op-Ed Bitcoin News

When billionaire Elon Musk announced that Tesla would no longer accept bitcoin as payment for its electric vehicles, the price of crypto assets tanked. In justifying this decision, Musk cited Bitcoin Mining’s inefficient use of electricity as well as its impact on the environment. In fact, before Musk got into this debate, many opponents of crypto had repeatedly attacked Bitcoin’s energy-consumption transaction confirmation process.

Bitcoin mining environmental logic

As expected, bitcoin extremists and crypto proponents are pushing against what they see as an unbalanced argument. For bitcoiners, the claim of environmental impact or the cost of electricity completely ignores the negative externalities associated with the creation / production of alternative reserves of value such as gold and the like. Admin.

Already, many reports have not only opposed this B T cK is based on the carbon footprint logic, but has also highlighted the environmental costs of operating a traditional currency system. For example, recent news Reported Another billionaire, Mark Cuban, informed Musk that his organization would continue to accept crypto.

Gold withdrawal negative externality

However, until some time ago, many reports did not focus only on the negative external aspects that are associated with gold extraction. The precious metal, which has been a traditional alternative reserve of value for centuries, has challenged its position B T c In the last few years. This challenge has essentially inspired supporters of gold and bitter opponents of bitcoin such as Peter Schiff to wage war against bitcoin. Now a new Report good Unraveling the real cost of gold mining, at least in Africa, could take the initiative away from opponents.

Comparing the true cost of gold mining in Africa with bitcoin mining
“The increase in illicit activities in gold-rich markets has reduced the ability to be the catalyst for the development of this precious commodity in these regional African markets. For many African communities, a long-standing, vital livelihood, gold ‘S trade attracts criminal actors due to its high-profit, low-risk nature (especially when compared to trading in other goods, both legitimate and illegal), “the Global Initiative Against Transnational Organized Crime Report notes.

The report, titled “Illegal Gold Markets in East and South Africa”, is an expose of violence, human trafficking and corruption occurring in parts of Africa with the withdrawal of gold. The report – which focuses on artisans’ gold mining in Kenya South Africa, South Sudan, Uganda and Zimbabwe – highlights the real damage atmosphere This type of gold mining is caused. For example, the report stated how the trade of “illegal mercury”, a substance that has been declared “hazardous to human health and the environment”, is actually linked to the illegal gold trade in countries such as Zimbabwe.

In addition, the report, which was commissioned by the Global Initiative Against Transnational Organized Crime (GITOC), accuses some of Zimbabwe’s corrupt officials of “allowing mining in protected areas such as Matobo and Umfurudzi National Parks”.

Human trafficking and corruption

On the other hand, in South Africa, a globally reputed permanent producer of gold, known as “Zama Zama” refers to the presence of illegal gold miners now adding a stain to this image.

Comparing the true cost of gold mining in Africa with bitcoin mining
The May 2021 GITOC report stated, “The stress on gold markets during the COVID-19 epidemic exposed the strength and resilience of illicit gold markets.”

Reportedly, these illegal miners, often foreign nationals of poor backgrounds, are being exploited by criminal gangs. Giving details of how these miners are mistreated, the report states:

They may also be forced to work underground for weeks, sometimes before resurfacing. These miners also face murder, forced migration, money laundering, corruption, racketeering, drugs and prostitution that have not been seen elsewhere in Africa.

In South Sudan, Africa’s youngest country, gold mining is dominated by thousands of artisan miners who lack the appropriate equipment and safety measures. As a result, country reports suggest that the falling trenches are responsible for “killing 4 miners per month”. In Kenya, mining areas on the border with South Sudan, Ethiopia and Uganda are “in some of the most dangerous parts of the country and are considered a haven for organized crime.”

Combat bitcoin opponents

Meanwhile, in this 73-page document, the authors attempt to uncover the true impact in these five African countries, as well as the hidden costs of gold production. While these revelations may not be a new thing to many in Africa, for crypto supporters, this document brings some new context to the bitcoin energy use debate. The revelations mean that any future comparisons of gold and bitcoin should not ignore the points raised in the GITOC report. For gold bugs like Schiff, trashing bitcoin would be insidious, ignoring their issues of precious metal altogether.

Nevertheless, this report also raises an important question: should bitcoin be judged solely on electricity use or may be judged on the basis of how it forces some central banks to initiate reforms Used to be? If the crypto adversaries cannot offer a separate argument to support the existing argument, it would be difficult to argue the case against bitcoin without an allegation of bias.

So while people like Elon Musk want to continue promoting the energy mantra of bitcoin, such comments will only have a temporary effect on the crypto economy, as it has in the past weeks. Genuine interest interest B T c And other digital assets will not end only on the basis of current logic. Central banks and governments have to come up with an option that outperforms both Fiat and cryptocurrency in any attempt to kill B T c Always be successful.

What are your thoughts on what is happening in the gold mining industry in Africa? Tell us what you think in the comments section below.

Tag in this story

Accept bitcoin, Africa gold mine, Bitcoin energy consumption, Bitcoin mining, BTC Mining, Dirty sleeping, Elon Musk, gold mine, gold mining, Gold trafficking, Mark cubano, Mining in Africa, money laundering, Peter shiff

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Avinash is a blogger, Enterprenuer, marketer and author. He is very good affiliate marketer and Product Reviewer.