Bitcoin is causing a sensation in Egypt. You didn't know that?
Egypt has a relatively complex relationship with Bitcoin and cryptocurrencies. The population seems very enthusiastic about cryptocurrencies, and their use is steadily increasing. This is confirmed by Google Trends reports on searches for the term "Bitcoin" in Egypt. Similarly, the number of users on cryptocurrency exchanges continues to grow.
On the other hand, the government would have made bitcoin transactions illegal after denouncing bitcoin as "haram" (contrary to the laws of the Koran). That said, this denunciation remains above all religious and the political spheres are still struggling to decide.
This makes widespread adoption even more complicated. Nevertheless, there are still Egyptians who secretly buy and sell the digital currency on peer-to-peer exchanges. Similarly, a small network of cryptocurrency miners is known to exist, operating in secrecy from their homes.
How do Egyptian Bitcoin miners do it?
Generally and unsurprisingly, people use computers suitable for mining cryptos. The miners have set up an underground network away from public view, and only a few are even willing to speak to the media. Many even refuse to talk about it to their close circle for fear of being unmasked.
It is said that in Egypt, several thousand people are discreetly mining cryptocurrencies. One of them, who agreed to answer questions from a journalist at the CairoScene newspaper , stated:
“They will be afraid to talk to you. Shit happens everywhere for no reason”
“Yes, I mine bitcoins,” said another. “But that doesn’t mean I’m going to tell you everything.”
We can make these minors understand everything. Also, Egyptian miners seem more interested in cryptocurrency mining with the aim of making a profit.
Creating money in your living room, without anyone's help, is a real revolution for them and for the world in general.
Create digital money from your living room
The Central Bank of Egypt refuses to accept digital currencies and only recognizes the Egyptian pound as legal tender.
Speaking to Cairo Scene under a pseudonym, Hussein, a bitcoin miner, says the law is rather ambiguous when it comes to bitcoin and as a result most people fear detection.
“I believe what I am doing is legal. When people are arrested for mining, it is usually because they are caught trading money on the black market, or they are counterfeiting money and simply have mining rigs. mining or bitcoins. The authorities see this and therefore associate cryptocurrency with illegal activity,” he said.
It's therefore logical that the mining community is adopting a defensive stance. What's surprising is that Bitcoin isn't technically illegal , so why go to such lengths to remain hidden?
Hussein explains:
“Recent statements they have given say that mining is not illegal, but it can definitely get you into trouble. I think the administration is trying to understand cryptocurrency, but they are still learning more. I am 99% sure that if they knew more about it it would be completely legalized in Egypt…. Legal as in Japan, United States, England, Europe, legal as in most countries. ”
How is Bitcoin mined in Egypt?
Bitcoin mining is the process by which miners contribute their computing power to solve complex algorithms in order to confirm and process transactions on the Bitcoin blockchain. This is how they are rewarded with Bitcoin. The greater the computing power, the greater the reward. This is why mining farms were created, housing a large number of computers with additional processing power to earn more Bitcoin.
These farms are absolutely secret and according to our private sources, there are them almost everywhere in Africa and particularly in North Africa...
Also, it turns out that it is precisely Ethereum that is currently the most mined cryptocurrency in Egypt, due to its most profitable mining option and easily accessible mining hardware locally.
It is not easy to obtain Asics for mining bitcoins, which are dedicated and high-performance machines, when you live in Egypt.
Whereas to mine Ethereum, the hardware is rather accessible because it involves graphics cards (GPU). These cards are part of classic computer elements which are widely used by video game players for example.
However, the reality of mining in Egypt is quite different from what is usually found in other countries. A multitude of hidden farms where digital currencies are mined every day are scattered across the bustling metropolis of Cairo.
You will find that the people involved in mining are not hackers or tech enthusiasts who geek out all night. No, they are people who have a “regular” job and are simply interested in cryptocurrency.
Hussein, a former economics student, is a perfect example. However, he decided to try his luck on the bitcoin mining scene. He began to do his own research, alone, on the internet.
That being said, despite the fact that the community is made up of different professionals such as economists, doctors, entrepreneurs and coders, they are united by the prospect of profiting from the volatility of bitcoin and cryptocurrencies in general.
Mining costs are lower because electricity is cheap
The typical mining setup includes a PC running at all hours of the day, non-stop. The latter, with multiple components like graphics cards, is a monster in terms of whatt. The process requires a lot of energy to prevent the equipment from overheating and becoming damaged; since the built-in PC fans are not enough to handle the heat produced by the constant and heavy workload.
Therefore, external fans and air conditioning are necessary to lower temperatures in mining operations.
Surprisingly, despite the challenges of keeping things cool in Egypt's arid environment, electricity costs are lower than in other developing economies. The cost is around 5 cents per kilowatt-hour. In contrast, in the West, it's around 14 cents, or three times as much!
This is also a surprising fact that we can highlight here: It is precisely in developing countries - with lower electricity costs - that mining cryptocurrencies proves to be the most profitable.
The height? Most governments have banned its use….
Hussein, the Ethereum miner, points out to the journalist that he pays his electricity bill and that this nevertheless allows him to make a profit.
For Mohammed, a Cairo-based Ethereum miner, the mining craze is fueled by more than cheap electricity. He says the way one pays for electricity plays an important role in making the mining business more lucrative.
“I think it’s better to mine cryptocurrencies in Egypt because you pay your energy bills in local currency, but you get your investment back in cryptocurrency.”
He explains that bitcoin, a digital asset, has held its value more reliably than the Egyptian pound, which is prone to inflation. This, combined with cheap energy, has led some expats to consider returning to Egypt, if only to indulge in “the joys” of mining.
Bassem is an Egyptian currently residing in Qatar, where he operates a Bitcoin mining farm. He owns a fleet of ASIC machines optimized for continuous Bitcoin mining. He initially began mining Bitcoin in Doha due to the free electricity supply. However, his goal is to return to Egypt this year.
Bassem is not worried about paying his bill in Egypt, because he believes his farm will still make a good profit once he has deducted the electricity costs.
What are the advantages of mining cryptocurrencies in Egypt?
For Egyptians, the exploitation of cryptocurrency has provided another way to get rich, in some ways.
Hussein, for example, developed an interest in digital currencies due to his studies in economics. He learned about bitcoin through YouTube videos and began mining in 2012. He then quit his job in Europe and returned to Egypt, which would not have been possible without the income he he made money from mining digital currencies.
“Cryptocurrency mining has allowed me to take time to think about my future plans rather than worrying about monthly expenses. Especially in Egypt, by operating a mine you can earn enough money to live. Depending on market fluctuations, a one-time investment of 50 Egyptian pounds in equipment can bring in around $000 per month. »
(Note: The report was produced in 2017 when the price of bitcoin was around $4000, do the math today as bitcoin reaches more than $10..)
Hussein, who is also a cryptocurrency trader on other platforms, insists he has made more money in cryptocurrency than investing in real estate.
The new coins he earns are converted into fiat currencies by trading them directly on exchanges.
Not only do individuals profit from mining, but local hardware stores profit from the demand for computer hardware. According to Mohammed, not only are hardware importers making good money, but a number of them have joined the bandwagon and gone into mining. Which is not surprising.
Hussein had this to add,
“Mining in Egypt is booming, but one of the problems is equipment; when the price of Ethereum skyrocketed, the demand for GPUs was high and stores couldn’t stock enough of them… Getting GPUs in Egypt is like buying drugs. In fact, it’s easier to get drugs than to get GPUs sometimes”
Regarding the heated debate led by critics in some Muslim countries who claim that cryptocurrencies could be haram if they are considered to generate money out of thin air. (You can read our article on halal Bitcoin ?)
Hussein commented: “But in my opinion, this is not the case. The business aspect is definitely not; it's a mutual agreement and bitcoin equals money, which is what we already use. And you can actually see a lot of religious people mining bitcoin. ”
Although bitcoin mining may seem unattractive to most due to the high energy requirements and technological complexity, the process allows Egyptian cryptocurrency miners to earn real money.
A minor added to close the report to send a message:
“I believe in the future of cryptocurrency – no one can refute it. This is already happening now, some countries have already made bitcoin official. I hope Egypt uses it eventually. They need to know that people are using it now, that they believe in it and trust it. »
You can also see the report on Youtube:
The source of this article is the article published on CairoScene.com
To learn more, you can also read our article on mining in Kuwait and Algeria , the cheapest countries to mine bitcoin.
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