There is an increase in the level of awareness of Kenyans about cryptocurrencies and other digital coins. With more and more Kenyans becoming aware of the existence of Bitcoin, Ethereum, and Tether, they are willing to invest and even trade via the available peer-to-peer platforms. With cryptocurrency trading on the increase, there is also a need for cryptocurrency miners.
By definition, cryptocurrency mining, or crypto mining, is the process in which transactions for various forms of cryptocurrency are verified and added to the blockchain digital tender, and people who engage in cryptocurrency mining are called cryptocurrency miners.
By the second week of January 2021, Kenyans transacted Bitcoins worth Ksh 150 million on the local platforms, making Kenya rank 5th in the country’s adoption in the Chainalysis 2021 Global Crypto Adoption Index. With the high adoption and transaction rates, there is an increase in the number of crypto miners in Kenya.
It should be noted that crypto mining is not as easy as it sounds. The process is complex; it involves verifying transactions of the particular cryptocurrency in a blockchain. The miners also create new blocks that contain a bundle of transactions. The process, however, is not simple due to the tough mathematical problems that miners solve as evidence of work done. The computer does most of the work and also determines the hash rate, or the speed at which a transaction is verified.
As complicated as it sounds, most young people are drawn to mining because of the high returns. It’s a risk worth taking, with miners earning a monthly income of approximately USD4,000 from Bitcoin mining, depending on the number of transactions handled and the type of installed equipment.
With high returns, there is a need for high investment. What does it entail to be a crypto miner?
First of all, you need a powerful Bitcoin mining rig. For example, the Bitcoin Gold GPU Miner 2000 H/s includes six Nvidia GTX 1060 6 GB graphics cards.) or Shark Mini. These rigs are very powerful, with high processing speeds and capacities.
Secondly, mining runs 24/7; you probably need a very reliable and stable power supply or source. On average, depending on the rig, the monthly power consumption can be approximately 266 watts to 1432 watts.
Thirdly, mining requires a stable and reliable internet provider and connection with at least 50 MBPS speeds.
Finally, mining necessitates space; some miners rent space, while others have the space in their servers.
As much as there are profits to be enjoyed, there are many challenges that Kenyan miners face. Firstly, there are, of course, blackouts and unreliable power supplies and internet speeds. Secondly, there are many malicious crypto currency miners who target users. These cyber criminals create fake web domains and share them with unsuspecting investors. Lastly, crypto currency fraud is also a challenge to miners.
Are we likely to see the number of miners increase despite the challenges encountered by miners? Yes, as long as there is an increase in the number of Kenyans interested and willing to invest in crypto currencies and other altered coins, there must also be an increase in the number of miners and mining farms.